bokrintAn oligopoly producing a homogeneous product is comprised of three firms that act like a cartel. Assume that these three firms have identical costschedules. Assume also that if any one of these firms sets a price for the product, the other two firms charge the same price. As long as they all chargethe same price they will share the market equally; and the quantity demanded of each will be the same. Below is the total-cost schedule of one of thesefirms and the demand schedule that confronts it when the other firms charge the same price as this firm. Complete the marginal-cost and marginal-revenue schedules facing the firm.erencesMcGrawHillOutput Total cost Marginal cost Price Quantity demanded Marginal revenue012345678$01803004807201,0201,3801,8002,280Short AneworLAJUL26$780720660600540480420360Toolbar navigation(a) What price would be charged, what output would be produced, and what profit would be made by this firm? (b) If the firms collude to maximize jointprofits, what would be the industry price, output, and profit?ty#19942312$3456 0078%5< Prev$AA64 of 5433MacBook Pro▬▬&7Next >ESCALL* 0089PORLrC)0O5+ 11

OutputTotal costMarginal costPriceQuantity demandedTotal revenueMarginal…

(a) What price would be charged, what output would be produced, and what profit would be made by this firm? (b) If the firms collude to maximize joint profits, what would be the industry price, output, and profit?

(a) What price would be charged, what output would be produced, and what profit would be made by this firm? (b) If the firms collude to maximize joint profits, what would be the industry price, output, and profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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