PRICE (Dollars)1009080706050403020100MC0+10ATCDD120 30 40 50 60 70 80 90 100QUANTITY (Units)If the firm adheres to the cartel agreement, its profits will be $AreaIf the firm breaks the cartel agreement and produces 90 units, its profits will be 3. Working with Numbers and Graphs Q4The following graph shows the marginal cost (MC) and average total cost (ATC) and the initial demand (D₁) curves of a perfectlycompetitive firm.Suppose this firm forms a cartel with other firms in the industry. Because of the cartel agreement, it has been assigned a productionquota of 25 units. The cartel price is $85 per unit of output.You may use the purple rectangle (diamond symbols) to help you answer the questions that follow. You will not be graded on anychanges you make to the graph.

Perfect competition is a type of market where there are very large number of firms,which have no…

PRICE (Dollars) 100 90 80 70 60 50 40 30 20 10 0 MC 0 + 10 ATC D D 1 20 30 40 50 60 70 80 90 100 QUANTITY (Units) If the firm adheres to the cartel agreement, its profits will be $ Area If the firm breaks the cartel agreement and produces 90 units, its profits will be

PRICE (Dollars) 100 90 80 70 60 50 40 30 20 10 0 MC 0 + 10 ATC D D 1 20 30 40 50 60 70 80 90 100 QUANTITY (Units) If the firm adheres to the cartel agreement, its profits will be $ Area If the firm breaks the cartel agreement and produces 90 units, its profits will be

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 36 There are complete barriers to entry in monopolistic competition. True False
A firm in a monopolistically competitive market has a monopoly power because: O There are very few other sellers in the market. There are many firms selling similar products. The firm is not concerned with entry of new firms. The firm's product is differentiated. ◄ Previous MAY 4 Next Not saved Submit tv
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A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Marginal Total Marginal Average Revenue Revenue Cost ($) Cost ($) Cost($) ($) (S) 0 19.00 30.00 2 18.00 36.00 18.00 35.00 2.50 17.50 4 17.00 68.00 16.00 45.00 5.00 11.25 6 16.00 96.00 14.00 60.00 7.50 10.00 8 15.00 120.00 12.00 77.00 10 14.00 140.00 10.00 12 13.00 156.00 8.00 14 12.00 168.00 6.00 16 11.00 176.00 4.00 18 10.00 180.00 2.00 8.50 9.63 100.00 11.50 10.00 126.00 13.00 10.50 165.00 19.50 11.79 210.00 22.50 13.13 260.00 25.00 14.44 20 9.00 180.00 320.00 30.00 16.00 If this industry was perfectly competitive, what price would the good sell for? $13 $12 $15 $14
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Assume an oligopolist confronts two possible demand curves for its own output, as illustrated below. The first (A) prevails if other oligopolists don't match price changes. The second (B) prevails if rivals do match price changes. Price (dollars per unit) 19- 17 Demand B 15- Demand A 13- 11. 8 10 12 14 16 18 20 Quantity (units per period) (a) By how much does quantity demanded increase if price is reduced from $11 to $9 and Instructions: Enter your responses rounded to the nearest whole number. (i) Rivals match the price cut? (ii) Rivals don't match the price cut? (b) By how much does quantity demanded decrease when price is raised from $11 to $15 and Instructions: Enter your responses rounded to the nearest whole number (do not include negative signs). (i) Rivals match the price hike? (ii) Rivals don't match the price hike?
A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Revenue ($) Marginal Revenue ($) Total Cost ($) Marginal Cost Average ($) Cost($) 0 25 0 25 30 2 24 48 23 35 2.5 175 4 23 92 21 45 5 11.25 6 22 132 19 60 7.5 10 8 21 168 17 77 8.5 9.63 10 20 200 15 100 11.5 10 12 19 228 13 126 13 10.5 14 18 252 11 165 19.5 11.79 16 17 272 9 210 22.5 13.13 18 16 288 7 260 25 14.44 20 15 300 5 320 30 16 If this industry was perfectly competitive, what price would the good sell for? $15 $19 $21 $23
The table above is for a monopolistic competitive firm. What will the firm's profit equal in the short run? Question 3 options: $0 $91 $102 $228
G The formula t xC Where Does X b My Questions X BC Broward C cmillanlearning.com/sac/5078081#/5078081/12/-1 Completed 16 out of 20 Question 13 of 20 > Which of these will contribute to a cartel's stability? O a copyright Obrand differentiation O ease of entry into an industry O having few members with similar goals Rain 五0
PRICE (Dollars per engine) 100 90 80 70 60 40 30 & 2 20 10 MO D 0 10 ATC MR Demand 20 30 40 50 60 70 DO 90 QUANTITY (Thousands of engines) 100 Mon Comp Outcome Min Unit Cost Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that optimal quantity. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is average total cost. at the the minimum
es Mailings Review View Help a v v Po E-E-FEAT 也。 Paragraph rrice and cost Jaollars per uni 80 60 40 20 ity: Investigate V D 0 20 40 60 80 100 Quantity (units per week) 27) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition charges a price of ? 28) Refer to Figure 13.2.2. To maximize economic profit, this firm in monopolistic competition produces an output of? 29) Refer to Figure 13.2.2. This firm in monopolistic competition A) is incurring an economic loss. B) is in long-run equilibrium. C) is making an economic profit. D) must raise its price to maximize economic profit. E) will make more economic profit in the long run. (DELL) O O J MR MC Normal ATC No Spacing Styles Heading 1
A monopolistic competitor has the following information about cost and demand. Quantity Price ($) Total Marginal Total Cost Marginal Revenue Revenue ($) Cost ($) Average Cost($) ($) ($) 0 15 0 15 175 5 14 70 13 180 1 36 10 13 130 11 190 2 19 15 12 180 9 207 3.4 13.8 20 11 220 7 225 3.6 11.25 25 10 250 5 250 5 10 30 35 40 45 9816 270 3 290 8 9.67 280 1 335 9 9.57 7 280 -1 385 10 9.63 270 -3 465 16 10.33 50 5 250 -5 565 20 11.3 Then, in the long run equilibrium, the firm will sell this good at what price? 1) $5 2) $7 3) $10 4) $14