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A: The cartels refer to the phenomenon where the firms and businesses tend to collude with each other…
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A: In economics, an oligopoly is a market system where a few suppliers (oligopolists) control the whole…
Q: What does the Chamberlin Model of price determination under duopoly assume?
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A: Given P = 60 - 1/2(Q) Where Q = total market demand in units. Marginal cost = $15/unit.
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Q: 100 90 80 Mon Comp Outcome 70 60 Min Unit Cost 50 ATC 30 20 10 MC MR Demand 10 20 30 40 50 60 70 80…
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Q: True O False
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A: It is an example of price leadership. because Price leadership describes a situation in which a…
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A: The answer provided below has been developed in a clear step by step manner.Step: 1The statement…
Q: What conditions may permit oligopolies to discriminate consumers?
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A: The correct option is: Price leadership model Explanation: The scenario outlined implies a pricing…
How would cartel decide optimal pricing and output
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- Coke and Pepsi dominate the cola market. Suppose that the marginal cost of making cola is $2. Assume also that the demand for cola is given by the following table: Price $8 7 6 5 4 3 2 1 Quantity 5 cans 6 7 8 9 10 11 12 Suppose Coke and Pepsi both supply cola. They form a cartel and agree to cooperate on how much soda to produce. In this cartel case, how many bottles of cola would be sold? Type your answer...A group of firms explicitly colluding to make price and output decisions is called a ) price leadership. b ) a cartel. c ) a concentrated industry. d ) an oligopoly.Breakdown of a cartel agreement Consider a town in which only two residents, Darnell and Eleanor, own wells that produce water safe for drinking. Darnell and Eleanor can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. (base to table 1) Suppose Darnell and Eleanor form a cartel and behave as a monopolist. The profit-maximizing price is $_____ per gallon, and the total output is _____ gallons. As part of their cartel agreement, Darnell and Eleanor agree to split production equally. Therefore, Darnell's profit is $_______, and Eleanor's profit is $______. Suppose that Darnell and Eleanor have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Darnell says to himself, "Eleanor and I aren't the best of friends anyway. If I increase my production to 45 gallons more than…
- Consider a Bertrand duopoly where market demand is P(Q)=107-5Q. Each firm faces a marginal cost $18 and no fixed cost. what is one market price that can occur in a Nash equilibrium?Monopolistically competitive firms could increase the quantity they produce and potentially lower the average total cost of production. Why don't they do so?Which of the following would be cases of cartels? Check All That Apply Ford Motor Company OPEC Major League Baseball Major League Baseball The restaurant industry DeBeers Microsoft
- How do pricing strategies vary across markets that are characterized bymonopolistic, oligopolistic, monopolistic competition, and purecompetition?What is the cost to a firm in an oligopoly that fails to take its rivals’ actions into account?please assist with f and h. Two dairy farmers produce milk for a local town with local milk demand given by Q=100-1/3P(P denotes price measured in Rands, Q denotes the quantity measured in liters). Both farmers have the same cost function given by TC=150+2q (where q denotes output). (f) Calculate the profits if farmer 2 decides to break the cartel agreement (g) Does joining a cartel offer any benefits to both farmers? Justify your answer (h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity andprofits made by these two farmers
- Contrast the three primary competitive pricing strategies.Which of the follow industries is the best example of an existing cartel? Group of answer choices Microsoft and Apple—two of the largest computer manufacturers Verizon and AT&T—two of the largest American mobile phone service providers GM, Chrysler, Ford—The big three American automobile companies OPEC, the Organization of Petroleum Exporting Countries
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