(1C) Individual profit earned by Dave, the oligopolist, depends on which of the following?(i)(ii)(iii)The quantity of output that Dave producesThe quantities of output that the other firms in the market produceThe extent of collusion between Dave and the other firms in the marketa. (i) and (ii)b. (ii) and (iii)c. (iii) onlyd. (i), (ii), and (iii)Answer for Question 1C:(1D) Cameron lives in an apartment building and gets a $700 benefit from playing his stereo. Renee,who lives next door to Cameron and often loses sleep due to the music coming from Cameron'sstereo, bears a $1,000 cost from the noise. At which of the following offers from Renee could bothRenee and Cameron benefit from the silencing of Cameron's stereo?a. $250b. $550c. $750d. $1,020Answer for Question 1D:(1E) The market for Wellesley-branded refrigerator magnets has the following demand and supplycurves respectively: QD = 16 – P and Q$ = 2*P – 8. The Town of Wellesley decides to impose aprice of $10/magnet on all refrigerator magnets. This policy will lead to ait is a pricebecausea. Surplus ; ceilingb. Shortage ; floorc. Surplus ; floord. Shortage ; ceilingAnswer for Question 1E:(1F) For a particular good, a 5 percent increase in price causes a 2 percent decrease in quantitydemanded. Which of the following statements is most likely applicable to this good?a. There are many close substitutes for this good.b. The good is a luxury.c. The market for the good is broadly defined.d. The relevant time horizon is long.Answer for Question 1F:

Since you have posted multiple questions, we will provide the solution to only the first question as…

(1C) Individual profit earned by Dave, the oligopolist, depends on which of the following? (i) (ii) (iii) The quantity of output that Dave produces The quantities of output that the other firms in the market produce The extent of collusion between Dave and the other firms in the market a. (i) and (ii) b. (ii) and (iii) c. (ii) only d. (i), (ii), and (iii) Answer for Question 1C:

(1C) Individual profit earned by Dave, the oligopolist, depends on which of the following? (i) (ii) (iii) The quantity of output that Dave produces The quantities of output that the other firms in the market produce The extent of collusion between Dave and the other firms in the market a. (i) and (ii) b. (ii) and (iii) c. (ii) only d. (i), (ii), and (iii) Answer for Question 1C:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

7. Comparing monopoly and perfect competition Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply curves (S= MC) in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from perfect competition. PRICE AND COSTS (Dollars per hot dog) 0.5 བྷྲ ༷ ྴ་ཤཱ་བྷ་ཛྙྰ་བླླ་ཤཱ་བ། 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.0 0 0 30 60 90 Perfect Competition S=MC D 120 150 180 210 240 270 300 QUANTITY (Hot dogs) PC Outcome Assume that one of the hot dog vendors successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog vendors in the city and operates as a monopoly. Assume…
Economics: Industrial Economics Question: A duopoly exists in the market for lumber in a town. It costs the first company, Big Cutters, $16 per cord of wood while it costs the second company, Pine Stackers, $10 per cord of wood. The local market demand curve for wood is Q-31,000-100P. Assume each has the capacity to serve the entire market and that they can only price in whole dollar amounts (i.e.$30, not $29.99). Assume initially that Cutters and Stackers decide to collude and split the market. How many cords of wood will they sell? Choices: A. 12,000 B. 9,000 C. 15,000 D. 20,000 2. What will be the price they charge? Choices: A. 190 B. 210 C. 110 D. 160 3. How much will Big Cutters produce? Choices: A. 9,000 B. 4,500 C. 0 D. 15,000 Now assume that collusion is not possible. 4. What is the Nash Equilibrium quantity that Pine Stackers Choices: A. 0 B. 15,300 C. 14,700 D. 29,500 5. What is the Nash Equilibrium price? Choices: A. 15 B. 112 C. 11 D. 157 Thank you for your…
2. Consider a monopolistic competitive industry with 4 firms producing the same good. The (inverse) demand for the good is given as: p=30-Q where is total units of the good produced by the firms: Q = Eq. Each firm chooses their output qi to maximize profits. The cost of producing q units of output is the same for all firms: C(qi) = 6qi for all i = 1, ..., 4. (a) Suppose all 4 firms choose their outputs at the same time (i.c., Cournot model), what will be the profit-maximizing outputs for each firm. [Note: Firms are iden- tical and face the same demand curve, hence model is symmetric]
Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other oligopolists don't match price changes. The second (B) prevails if rivals do match price changes. Price (dollars per unit) 19- 17 Demand B 15- Demand A 13- 11. 8 10 12 14 16 18 20 Quantity (units per period) (a) By how much does quantity demanded increase if price is reduced from $11 to $9 and Instructions: Enter your responses rounded to the nearest whole number. (i) Rivals match the price cut? (ii) Rivals don't match the price cut? (b) By how much does quantity demanded decrease when price is raised from $11 to $15 and Instructions: Enter your responses rounded to the nearest whole number (do not include negative signs). (i) Rivals match the price hike? (ii) Rivals don't match the price hike?
I need help with A and B
not use ai please
1
Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day. What is its daily total revenue? $ Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from 28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came in at $550. Which of the following is most logical to conclude? The firm's demand curve is (Click to select) < Prev Ne 28 of 50
Problem 3. Longer problem. Consider 2 firms F1 and F2 that produce identical products and have identical cost functions c₁ (31) = y2 and c₂ (y2) = y2. The demand function is p (yr) = 24 - yr where yry1 + y2 is the output produced by the two firms. i) Find a competitive equilibrium including the price, quantity and profit in which price = marginal cost. ii) Find the monopoly solution including the price, quantity and profit in which marginal revenue marginal cost. iii) Find the oligopoly (duopoly) Nash equilibrium including the price, quantity and profit in which both firms engage in Cournot competition. iv) Suppose that the oligopolists form a cartel and play a repeated game. Assume that they maximize infinite discounted profits for periods t = 0, 1, 0, ..., specifically, To ++ (1+r)² + .... The duopolists can remain in cartel forever and share the monopoly profit equally so each of them gets Tm 2 + 2 77m 2(1+r) 2(1+r)² cheating + + Alternatively, one of them can decide to break the…
a) True or False and Explain: A profit maximizing monopolist has no limit to how high they set the price. b) True of False and explain: When there are economies of scale in production it is possible for a competitive market to sustain the competitive equilibrium. c) When there are economies of scale in production, why is it beneficial to have only one producer?