8) Consider an oligopoly market in which there are 9 firms. Suppose that the 9 firms are able o perfectly collude. Then, the combined quantity output of these 9 firms will be: a) The same quantity as the perfectly competitive market quantity b) Greater than the monopoly quantity c) Nine times the monopoly quantity d) Equal to the monopoly quantity e) A ninth of the monopoly quantity

8) Consider an oligopoly market in which there are 9 firms. Suppose that the 9 firms are able o perfectly collude. Then, the combined quantity output of these 9 firms will be: a) The same quantity as the perfectly competitive market quantity b) Greater than the monopoly quantity c) Nine times the monopoly quantity d) Equal to the monopoly quantity e) A ninth of the monopoly quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Market Demand Curve I) The graph shows the market demand curve. Price (S) 40 35 2 28 24 20 16 12 36 32- 8 4- D 8 9 10 Quantity The equilibrium price in a Cournot duopoly with identical goods is $ a.8. b. 12 c.24 O d. 18.64 0 MC=AC MR 1 2 3 4 5 6 7
9. Two firms compete by choosing price. Their demand functions are q1 = 20 – pı + P2 and q2 = 20 – P2 + P1. Marginal costs are zero a) Suppose the two firms set their prices at the same time. Find the resulting NE. What 2 price will each firm charge, how much will it sell, and what will its profit be? b) Suppose Firm 1 sets its price first and then Firm 2 sets its price. What price will each firm charge, how much will it sell, and what will its profit be? c) Suppose there are three ways this game can be played: both firms set price at the same time; firm 1 sets its price first; firm 2 sets its price first. If firm 1 can choose among these options, which would it prefer?
7. Suppose that the inverse market demand for pumpkins is given by P = $10-0.050. Pumpkins can be grown by any- one at a constant marginal cost of $1. ena. If there are lots of pumpkin growers in town so that the pumpkin industry is competitive, how many pumpkins will be sold, and what price will they sell for? b. Suppose that a freak weather event wipes out the pumpkins of all but two producers, Linus and Lucy. Mesob 0 17050
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
Extra exercises (3) [Compatibility Mode] - Word (Product Activation Failed) Mailings Review View O Tell me what you want to do.. References |A A Aa- 三-三, 21 T AaBbCcDc AaBbCcI AaBbCcDc AaBbC AaBbCc) Aal * A- y - A- 三。 1 Normal Body Text 1 No Spac.. Heading 1 Heading 2 Title Paragraph Styles Question 1. The graph shows the monopolistic firm. Use the graph to answer the following questions. a. What is the profit-maximizing output and price level of monopolist? cost structure of a MC ATC 10 AVC 8. b. Calculate the economic profit. Show it on the graph. c. Calculate the deadweight loss from monopoly. Explain in words what this means. MR d. Find the price and quantity that would maximize social welfare. 4 567 10 12 Quan hly unib per day Question 2. ATC MC 8!unaad uoop) a s00 puo acu (yop) a ao pvo au
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If members of an oligopolistic industry wish to maximize profits for the industry, they will likely charge prices that are what a monopoly would charge and all together produce a quantity that is what a monopoly will produce. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a b с Question 13 Homework. Unanswered Due Today, 11:59 PM d greater than; equal to equal to; higher than greater than; higher than equal to; equal to Unanswered Submit
In a Cournot oligopoly with N firms and identical marginal costs, what is the relationship between the price elasticity of market demand and that of the firm? Multiple Choice EM EF EM EN There is no deterministic relationship EM-NEF
In monopolistic competition equilibrium with symmetric fırms, firms enter until each firm earns O zero economic profits because price equals average cot. O positive monopoly profits because it sells a differentiated product. O positive economic profits only if it engages in international trade O negative economic profits because of fixed costs.
The table below shows revenue data for different firms producing cell phones. Use the given information to determine the 4 Firm Concentration ratio. Firm Revenue in $ Market Share in % Aardvark Inc 490 19 Buzzy Co 11 285 Cran Inc 310 12 Delta Co 460 18 Echo Co 505 20 Farriss Co 515 20 What is the Four Firm Concentration Ratio? Is this market concentrated? OYes ONo EPIC
Consider a duopoly market with 2 firms. Aggregate demand in this market is given byt Q = 500 – P, where P is the price on the market. Q is total market output, i.e., Q = QA + QB, where QA is the output by Firm A and QB is the output by Firm B. For both firms, marginal cost is given by MC = 20, i=A,B. « Assume the firms compete a la Cournot. e a) Find the inverse demand in this market. Note that marginal revenue for both firms is given by MRA=500-2QA-QB, MRB=500-QA-2QB. b) Describe what a best-response curve is and how to find it. c) Derive the best-response function for each firm. d) What are the equilibrium quantities? e) What is the total quantity supplied on this market? f) What is the equilibrium price in this market?