Let demand for car batteries be such that Q = 10 2P. Assume constant marginal costs of 3.

Let demand for car batteries be such that Q = 10 − 2P. Assume constant marginal costs of 3. Compute the equilibrium price, quantity, consumer surplus, producer surplus for

(e) Suppose a discount factor of 0.96 and a duopoly structure on agreements. What is the Pareto frontier of agreements that may form the basis of a cartel?