D100806040(0,40)200.2004006008001000Quantity per periodCosts and revenues Suppose there are no fixed costs and marginal cost is a constant $50.a. What are the perfectly competitive price and output?Price: $50Output:500b. What are the cartel (monopoly) price and output?Price: $Output:c. If there are only four firms in the cartel, what are the price and output of each firm,decimal place.Price: $Output:

The cartel will act as a monopoly and produces at a point where marginal revenue is equal to…

Answered: b. What are the cartel (monopoly) price…

b. What are the cartel (monopoly) price and output? Price: $ Output: c. If there are only four firms in the cartel, what are the price and output of each firm, decimal place. Price: $ Output:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

D
100
80
60
40
(0,40)
20
0.
200
400
600
800
1000
Quantity per period
Costs and revenues

Suppose there are no fixed costs and marginal cost is a constant $50.
a. What are the perfectly competitive price and output?
Price: $
50
Output:
500
b. What are the cartel (monopoly) price and output?
Price: $
Output:
c. If there are only four firms in the cartel, what are the price and output of each firm,
decimal place.
Price: $
Output:

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