The following table shows your neighborhoods demand for driv

The following table shows your neighborhood\'s demand for driving services. Assume that only two firms (Uber and Lyft) sell in this market, that each firm offers the same quality of service, and that each firm\'s marginal cost is constant and equal to $0 because of excess capacity Number of customers (Q)onth (TR) Price per pickup (P) Total revenue per 1800 $900 1,600 2,100 $2,400 2400 2,100 1,600 10 4 OF 18 QUESTIONS COMPLETED K05/18 > VIEW SOLUTION O Type hee to seach

Solution

1) In above case profit or total revenue is maximised when Q=1000

And both firm will supply Quantity=500 pickups each, earning a profit of 1250

2)collusion/cartel/ monopoly decision