In a six-firm market if all firms charge the monopoly price


In a six-firm market, if all firms charge the monopoly price, the profit equals $120,000. In that same six-firm market, if all firms instead charge the prevailing price, the profit is $60,000. If the pricing period is one-month long, what is the maximum monthly discount rate implied for each firm to still have an incentive to independently price at the monopoly level?

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Business Economics: In a six-firm market if all firms charge the monopoly price
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