How much firm produce to minimize costs of production


(a) the 10 identical firms in a purely oligopolistic industry form a centralized cartel;
(b) the total market demand function facing the cartel is Q = 240 - 10P, where P is given in dollars; and
(c) each firm's marginal cost function is MC = $1 for Q > 4 units, and factor prices remain constant.

Find:

A. The best level of output and price for this cartel.
B. How much each firm should produce if the cartel wants to minimize costs of production.
C. How much profit the cartel will make if ATC = $12 at the best level.

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Microeconomics: How much firm produce to minimize costs of production
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