Question

Now let's assume this monopoly splits into a duopoly - and everything (production, costs, profits, and so forth) will be split right down the middle between the two firms. Under this agreement each firm will make $__________ in profits.

Answer 1

Answer: hi some parts of your question is missing attached below is the missing table

answer : $17,000

Step-by-step explanation:

when we split ( Monopoly splits to duopoly )

Maximum profit price = $14

because at $14 ; MR ( marginal revenue ) = MC ( marginal cost ) = 18,000

Maximum profit quantity = 7000

Hence Profit by both firms = TR - TC ( Total cost )

= ( 14 * 7000 ) - 64000 = $34000

∴ profit by each firm = 34,000 / 2 = $17,000