In Fruitland, strawberries are sold in 4-litre baskets to customers on a "pick-your-own" basis. There are 2 farmers who sell strawberries: Mickey and Kit. There are no costs of supplying strawberries for sale for either farmer, so each has MC = ATC= 0. Profit therefore is simply TR. Market demand for strawberries is given in the accompanying table. If the market were served by a monopolist, the quantity traded would be 125 baskets, the price per 4-litre basket would be $7.50, and the profit for the firm would be $937.50. If Mickey and Kit decide to collude, what would be their individual quantity supplied and profit? Click the icon to view market demand for strawberries. Mickey's individual quantity supplied would be and Mickey's profit would be $. Kit's individual quantity supplied would be would be $. baskets baskets and Kit's 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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Subject: economics 

Market Demand for Strawberries
P
11.00
10.25
9.00
8.00
7.50
6.00
4.50
3.00
Q
25
50
75
100
125
150
175
200
TR
275.00
512.50
675.00
800.00
937.50
900.00
787.50
600.00
X
Transcribed Image Text:Market Demand for Strawberries P 11.00 10.25 9.00 8.00 7.50 6.00 4.50 3.00 Q 25 50 75 100 125 150 175 200 TR 275.00 512.50 675.00 800.00 937.50 900.00 787.50 600.00 X
In Fruitland, strawberries are sold in 4-litre baskets to customers on
a "pick-your-own" basis. There are 2 farmers who sell strawberries:
Mickey and Kit. There are no costs of supplying strawberries for sale
for either farmer, so each has MC = ATC=0. Profit therefore is simply
TR. Market demand for strawberries is given in the accompanying
table. If the market were served by a monopolist, the quantity traded
would be 125 baskets, the price per 4-litre basket would be $7.50,
and the profit for the firm would be $937.50. If Mickey and Kit decide
to collude, what would be their individual quantity supplied
and profit?
Click the icon to view market demand for strawberries.
Mickey's individual quantity supplied would be
and Mickey's profit would be $
Kit's individual quantity supplied would be
would be $.
baskets
baskets and Kit's profit
Transcribed Image Text:In Fruitland, strawberries are sold in 4-litre baskets to customers on a "pick-your-own" basis. There are 2 farmers who sell strawberries: Mickey and Kit. There are no costs of supplying strawberries for sale for either farmer, so each has MC = ATC=0. Profit therefore is simply TR. Market demand for strawberries is given in the accompanying table. If the market were served by a monopolist, the quantity traded would be 125 baskets, the price per 4-litre basket would be $7.50, and the profit for the firm would be $937.50. If Mickey and Kit decide to collude, what would be their individual quantity supplied and profit? Click the icon to view market demand for strawberries. Mickey's individual quantity supplied would be and Mickey's profit would be $ Kit's individual quantity supplied would be would be $. baskets baskets and Kit's profit
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