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Market Price 90 80 70 Total Market Output 600 800 1,000 1.200 1,400 1.600 1.800 60 50 40 30 (Table: Three-Country Oil Product

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Answer #1
Q P TR
600 90 54000
800 80 64000
1000 70 70000
1200 60 72000
1400 50 70000
1600 40 64000
1800 30 54000

1) Output for each firm = 1200/3 = 400

2) Profits for A increases by (600*50)-(400*60) = 6000

3) Profits for B and C falls by (400*60)-(400*50) = 4000

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