Question:
Adi and Jill are the only doctors in a small Pennsylvania town who offer LASIK eye surgery. The table provides the demand schedule for eye surgeries in this town. Each doctor faces a constant marginal cost of $50 to perform the surgery; there are no fixed costs.
price (dollars) | quantity |
500 | 3 |
450 | 4 |
400 | 5 |
350 | 6 |
300 | 7 |
250 | 8 |
200 | 9 |
150 | 10 |
100 | 11 |
50 | 12 |
If Adi and Jill collude to achieve the monopoly outcome, how many surgeries should each doctor perform? Assume they split the output evenly.
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