Four tire manufacturers decide to form a cartel. All four manufacturers agree to restrict their total output to 400 tires and charge $100 per tire. Suppose one tire manufacturer decides to cheat by producing an additional 80 tires and the price drops to $80. How much will the cheater gain from the additional 80 tires at the new price? $6,400 un $2,000 №b $4,400 NO $1,600
Four tire manufacturers decide to form a cartel. All four manufacturers agree to restrict their total output to 400 tires and charge $100 per tire. Suppose one tire manufacturer decides to cheat by producing an additional 80 tires and the price drops to $80. How much will the cheater gain from the additional 80 tires at the new price? $6,400 un $2,000 №b $4,400 NO $1,600
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
A 186.
![Four tire manufacturers decide to form a cartel. All four manufacturers agree to restrict their total output to
400 tires and charge $100 per tire. Suppose one tire manufacturer decides to cheat by producing an
additional 80 tires and the price drops to $80. How much will the cheater gain from the additional 80 tires at
the new price?
58/2
$6,400 V
$2,000
$4,400
$1,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c36485c-0099-4862-8f3c-a0eecaf9cef9%2F7e82e887-39bc-4b77-96ca-f85d39622b76%2F3nd3cff_processed.png&w=3840&q=75)
Transcribed Image Text:Four tire manufacturers decide to form a cartel. All four manufacturers agree to restrict their total output to
400 tires and charge $100 per tire. Suppose one tire manufacturer decides to cheat by producing an
additional 80 tires and the price drops to $80. How much will the cheater gain from the additional 80 tires at
the new price?
58/2
$6,400 V
$2,000
$4,400
$1,600
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