do fast i will 5 upvotes. no use chatgpt answer. Refer to the graph of market demand andmarginal revenue. Two firms have formeda centralized cartel in order to maximizeprofit on the market. Their marginal costcurves are given below:100Price9080706050403020100ก2-51 2 3 4 5 6 7 8 9 10 11DemandQuantityShow Transcribed TextMC₁ = 10Q1 and MC₂ = 30 Q2In order to maximize profit, the firmsshould produce Q1 = 3, Q2 = 1, and chargeP= 60. How do I solve this?

Answered: Image /qna-images/answer/f0c93c3d-1982-4752-a1f3-382482326b56.jpg

Answered: Refer to the graph of market demand and…

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 2CQQ

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When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that the cartel could stay together over the long term-that the incentives for individual members. to cheat would become too strong. More than fort),r years later, OPEC still exists. Why do you think OPEC has been able to beat the odds and continue to collude? Hint: You may wish to consider non-economic reasons.
Is it true that the four-firm concentration ratio puts more emphasis on one or two very large films, while the Herfindahl-Hirshmau Index puts more emphasis on all the films in the entire market? Explain briefly.
Consider the curve in the figure below, which shows the market demand. marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn? Suppose now that the cane] breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.
Price MC 500 700 900 Quantity Five firms in an industry have equal and constant marginal costs and act as a cartel, with each firm agreeing to charge a price of $9. If they each sell an equal quantity of output, each firm will earn $ type your answer in revenue. If one firm decides to increase its quantity sold by 200 units, the cheating firms revenue will increase by $ type your anwer and the remaining firms will see tir total revenue decrease by $ type your anwwer.
PRICE (Dollars per can) 2.00 1.80 1.60 Demand 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0 0 MC = ATC MR 90 180 270 360 450 540 630 720 810 900 QUANTITY (Cans of beer) Monopoly Outcome $0.80 per can. Given this When they act as a profit-maximizing cartel, each company will produce 180 cans and charge information, each firm earns a daily profit of $144.00, so the daily total industry profit in the beer market is $288.00. Oligopolists often behave noncooperatively and act in their own self-interest even though this decreases total profit in the market. Again, assume the two companies form a cartel and decide to work together. Both firms initially agree to produce half the quantity that maximizes total industry profit. Now, suppose that Stargell decides to break the collusion and increase its output by 50%, while Schmidt continues to produce the amount set under the collusive agreement. Stargell's deviation from the collusive agreement causes the price of a can of beer to now $ , while Schmidt's…
7 Question 5 of 24 - HW16: Ho × Question 19 of 19 - HW15: Ho X M Changing a Major // Advising Gwhere to find cartel profit on X + ng.com/sac/10376090#/10376090/18/4 ✓ A Pause 50 pts 0 Hint Submit Answer uestion 19 of 19 > The accompanying payoff matrix presents the profits for Firm A and Firm B under two pricing strategies. © Macmillan Learning Firm A's strategy High price Low price Firm A Profit = $87 Firm A Profit = $113 High price Firm B Profit = $87 Firm B Profit = $41 Firm B's strategy Firm A Profit = $41 Low price Firm B Profit = $113 Firm A Profit = $71 Firm B Profit = $71 Suppose both firms have agreed to employ strategies that maximize their combined profits. How will the firms act? Firm A will agree to Set a high price Set a low price Firm B will agree to Set a low price Set a high price Attempt 6 Compare the profits of Firm A when both firms respect the collusive agreement to the profits of Firm A when Firm A secretly cheats on the agreement. How much additional profit would…
ne Semester 2023 dules nouncements NWP Assessment Play X signments scussions yllabus Grades Zoom People Turnitin https://calstatela.instructure.com/courses/85933/quizzes/382812/take Oligopoly Oaksville has two tennis instructors, Sam and Jack. The figure shows the demand curve and marginal revenue for tennis lesson appointments and the average total cost. Price and cost (dollars per appointment) Microsoft Office 365 Google Apps Type here to search X F1 @ 2 21 A- F2 A+ F3 Quiz: Homework 7 #3 X F4 BI $ 4 70 60 50 40 30 23 10 ☀ - F5 0 X % 5 2 Alt Text: pink glitter ro X Alt Text: appointments Competitive Outcome, (Pcomp, Qcomp) ☀+ F6 6 MR 8 F7 6 4 10 Quantity (appointments per hour) L yu F8 8 & 7 O MC D ATC F9 Negative Manuscript X * 00 8 F10 ( 9 n F11 ) 0 Oracle Peopl 59°F Mostly clouc ☆ A to F12 Hom
The table shows the demand schedule for a particular product. Quantity Price 0 100 300 90 600 80 900 70 1200 60 1500 50 1800 40 2100 30 2400 20 2700 10 3000 0 Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quantity in this market. If the marginal cost to produce this product is constant at $40 per unit, then what price will the cartel set in this market? a. $40 b. $50 c. $60 d. $70 e. $80
6. Deviating from the collusive outcome Mays and McCovey are beer-brewing companies that operate in a duopoly (two-firm oligopoly). The daily marginal cost (MC) of producing a can of beer is constant and equals $0.40 per can. Assume that neither firm had any startup costs, so marginal cost equals average total cost (ATC) for each firm. Suppose that Mays and McCovey form a cartel, and the firms divide the output evenly. (Note: This is only for convenience; nothing in this model requires that the two companies must equally share the output.) Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and combined quantity of output if Mays and McCovey choose to work together.
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Question 18 Dollars bon 0 MR g Output hj MC ATC The diagram above shows kinked demand and marginal revenue curves for a non-collusive oligopolist. What basic assumption is used to create this kinked structure) O firms ignore action of rival hems Orivals will match both a price increase and a price decrease Crivals will match a price increase but ipnore a price decrease rivals will ignore a price increase but match a price decrease No new
Hi, could you please help me solve this? I didn't understand where the numbers come from in the solutions. Could you explain step by step how to solve this? P.S. The textbook is called "Economics" by Krugman & Wells. Chapter 14, Problem 4.

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