Suppose the demand for oil is P=122Q 0.20. There are two oil producers who do not cooperate. Producing oil costs $13 per barrel. What is the profit of each cartel member?
Q: Discuss the reasons for 2008 Global Mortgage Crisis. Please limit your report to no more than 300…
A: Financial deregulation was the root cause of the financial crisis. This allowed banks to trade hedge…
Q: Explain the Friedmanian model of NAIRU
A: NAIRU stands for Non Accelerating Inflation rate of Unemployment.
Q: The market interest rate is 9 percent and is expected to stay at that level. Consumers can borrow…
A: 1) In case of Rebate: It is assumed that the consumer will borrow for purchasing the car. Cost of…
Q: Region Real GDP per capita (2010) Average annual growth rate of real GDP per capita for 2010-2080…
A: Given that; Region Real GDP per capita (2010) Average annual growth rate of real GDP per capita…
Q: The Marginal Rate of Commodity Substitution of Food for Clothing at Point A is O a O b.0.42 O c.2.40…
A: MRS of food for clothing=Change in consumption of clothing at point AChange in consumption of food…
Q: Economics Part 1 O See Hint A firm produces output () using two inputs, labor (L) and capital (K),…
A: Given; Production function; y=f(L,K)=L0.25K0.75 where; K= 60 L= 120
Q: J. What is the price range that will result to a surplus in the market?
A: * SOLUTION :- (J)
Q: What are the characteristics of a monopoly market . Please explain in detail.
A: A market structure defined by a single vendor offering a market-exclusive product.The seller in a…
Q: Economics Part 1 O See Hint A firm produces output (y) using two inputs, labor (L) and capital (K),…
A: The Cobb–Douglas production function is a functional version of the production function extensively…
Q: A firm has a production function QL,K=100L0.4K0.6 with a cost function CL,K=5L+30K. What is the…
A: Q(L,K)=100L0.4K0.6 C(L,K)=5L+30K w=5 r=30 Q=1000 MPL=dQ/dL=0.4(100)L-0.6K0.6 MPL=40L-0.6K0.6…
Q: Suppose the following table shows your demand schedule for CDs. Price Quantity Demanded $15 1 12 3.…
A: a) Total utility can be measured by adding the price the consumer is paying to get the products.…
Q: People who live in countries with a greater number of cars per capita have a higher life expectancy.…
A: When a common factor causes two unrelated variables to correlate in the same way, this is known as a…
Q: [Extended dynamic analysis] The market for wheat is affected by the recent unrest in Ukraine…
A: Market refers to the place where the buyers and sellers buy and sell goods and services in the…
Q: Question 13 Refer to Figure 6-1 What are total costs for Dough!, given that it maximize profits?…
A: "A monopoly firm maximizes profit when marginal revenue (MR) intersects marginal cost (MC)."
Q: 2. An electric sewing machine costs P10,000 with a salvage value of P500 at the end of 10 years.…
A: Fixed assets are assets that a company keeps for a longer length of time.Depreciation is applied to…
Q: when monopolist faces a downward slope demand curve it can increase its revenue by?
A: First let's understand what characteristics we find in a monopoly market structure. The most…
Q: 3. NewTech wants to consider risk and return in evaluating the following alternatives: Probability…
A: Given , probability demands 0.3 for low , 0.5 for medium and 0.2 for high.
Q: The table below shows the total product for Car Suds, a car wash service. The market for car washes…
A: "As per the question the market for car washes is perfectly competitive and in order to maximize…
Q: The formula to calculate elasticity using the arc method is given below:…
A: The formula to calculate elasticity using the arc method: E = (Q2-Q1)/(Q2+Q1)(P2-P1)/(P2+P1) so we…
Q: Q.1: A company purchased equipment on November 1, 2019. Equipment was used 300 hours in 2019, 2800…
A: The decrease in value of an asset due to various factors including wear and tear and technology…
Q: You find that both the US and ECB treasury yield curves are backwardated. This is suggestive that:…
A: In some aspects, the current predicament mimics Greenspan's bond crisis.This time around,…
Q: The people who live on Shangri-La Island consume only rice and fish. Last year, which was the…
A: Here, it is given that the people of Shangri-La consumes only rice and fish, but there is a change…
Q: 20. Refer to the graph below. Quantity Since the supply curve intersects the horizontal axis, all of…
A: The price elasticity of supply is an economics statistic that indicates how responsive (or…
Q: Do you feel that this near zero interest was necessary one, or may not work to save declining…
A: Important Takeaways A central bank's target short-term interest rate is set at or near zero percent…
Q: Your company is going to invest in a new machine that expects to produce $50,0oo in new profits each…
A: Given information: Profit for 3 years = $50000 each year First-year investment for machine = $50000…
Q: (1) A monopolist is forced to lower its price in order to sell another unit of its product. This…
A: As per the guidelines answer is given to the first question i.e. (1): (1) "A monopolist is a price…
Q: hink about getting into the business of selling computer parts and accessories. Which of the…
A: Sales: It refers to the transaction that takes place between two people. The buyer purchase the…
Q: 1. Assume you spend your entire incomc on two goods X & Y with prices given as Px & Py,…
A: Given function U=X2+Y2 Price of X=Px Price of Y=Py
Q: T and X entered into a contract of sale of a piece of land. T agreed that on the 5th day of July…
A: Answer - Absolute sell :- absolute sale the seller will sell the property to the buyer at…
Q: Two interest groups are competing for influence in Congress. One group represents banking…
A: Banking Interest Group:- The quantity of funds a creditor or banking institutions earns for giving…
Q: Explain how a price ceiling leads to excess demand or market shortage. Use a diagram to motivate…
A: Price ceiling The maximum legal pricing for a service or product is known as a price ceiling. A…
Q: 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3 (u - u") Y* Where u…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: Equilibrium in the goods market exists when production, Y, is equal to the demand for goods, Z.…
A: Aggregate Production = Y Aggregate Demand (Z) = Consumption Spending + Investment Spending +…
Q: Are you concerned about the inflation come back due to such easy monetary policy with zero interest…
A: The pace at which prices keep rising over a certain amount of time is referred to as…
Q: Suppose the demand for oil is P=122Q 0.20 There are two oil producers who do not cooperate.…
A: Profit = Total Revenues - (Explicit Costs + Implicit Costs)
Q: 4. Suppose that Okun's law can be described by the following equation: Y-Y* = = -3(u – u') Y* Where…
A: The statistical link between a country's unemployment and economic growth rates is examined by…
Q: would you be able to finish the remaining blank slots?
A: The monetary policies refer to the policies of the central banking system of the economy. The…
Q: If someone takes a leave from the labor force for several years after having children and then they…
A: Labor force refers to the proportion of total adult population that is willing to work and has the…
Q: The table below shows economic activity for a tiny country. Using the expenditure approach determine…
A: The expenditure method is a framework for working out gross domestic product(GDP) that joins…
Q: What is the difference between the rates of return for a renewable and nonrenewable resource? How do…
A:
Q: Tollowing graph shoWs the market Tor pear ver, where there are more than a es that Sell peanut…
A: We have given the supply and demand curve for peanut butter in Vancouver
Q: Capital Labour Total product Average product marginal product 3 0 0 3 1 5…
A: As per the guidelines answer is given to the first three sub parts: i) "Average product is computed…
Q: In building their plant, the officers of the International Leather Company had the choice between…
A: Present value (PV), is the value of a normal still up in the air as of the date of valuation.
Q: In the Keynesian model, the consumption function is C = 0.8(Y - T), planned investment I is equal to…
A: In a closed economy, the planned aggregate expenditure is the sum of consumption, investment, and…
Q: c. Now suppose a minimum wage is legislated at a level higher than W*, i.e. WMIN>W*. Show it in the…
A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…
Q: Proponents of import substitution industrialization (ISI) in Latin America had to assume that…
A: Latin America was very unstable throughout the 19th century. Countries centered their resources on a…
Q: A firm has the long-run cost function CQ) = 4Q + 64.In the long run, it will supply a positive…
A: The long-run cost curve is a cost function that models this minimum cost over time, meaning inputs…
Q: Economics 4. Suppose that Okun's law can be described by the following equation: Y-Y* = -3(u – u')…
A:
Q: What are the global perspectives on small business?
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: 6. Imagine inflation is 10%, and the central bank wants to have inflation equal to 2%. When…
A: The Philips curve is a concept developed by AW Philips in economics which states that there is an…
Step by step
Solved in 2 steps with 1 images
- Suppose that the central bank for this economy suddenly and unexpectedly decreases the money supply in an effort to reduce inflation. As a result of this unanticipated policy action, actual inflation falls to 3%. On the previous graph, use the black point (plus symbol labeled "B") to illustrate the short-run effects of this policy. Suppose that now, after a period of 3% inflation, households and firms begin to expect that the inflation rate will persist at the level of 3%. On the previous graph, use the purple line (diamond symbol) to draw SRPC₂, the short-run Phillips curve that is consistent with these expectations, assuming that it is parallel to SRPC₂- Finally, using the orange point (square symbol labeled "C"), indicate on the previous graph the new, long-run equilibrium for this economy. The inflation rate at point C is unemployment rate at point A. the inflation rate at point A, and the unemployment rate at point C is Was the central bank able to achieve its goal of lowering…consider the market for oil. Suppose for simplicity that there are only two oil roducing countries-Saudi Arabia and Kuwait. Both countries must choose hether to produce a low output or a high output. These output strategies with corresponding profits are depicted in the ayoff matrix to the right. Kuwait's profits are in red and Saudi Arabia's are in blue. Kuwait Suppose the two countries form a cartel. What is the cooperative equilibrium? Low Output High Output O A. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a high output. $125 $75 Low Output $8 $13 O B. A cooperative equilibrium does not exist for this game. O C. The cooperative equilibrium is for Saudi Arabia to produce a low output and Kuwait to produce a high output. Saudi Arabia $98 $70 O D. The cooperative equilibrium is for Saudi Arabia to produce a high output and Kuwait to produce a low output. High Output $5 $8 O E. The cooperative equilibrium is for Saudi Arabia to produce…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
- The payoff matrix represents hypothetical profits that could be earned by two milk sellers who have formed a cartel. Each seller must decide whether or not to cheat on the production quotas in the cartel agreement. Use the payoff matrix to answer the questions. Heifer's Gold Cheat Do not cheat Cheat A Milky Moos $148,000 $148,000 $200,000 $140,000 Do not cheat B a. Does either member have an incentive to cheat? $200,000 D $140,000 $150,000 Milky Moos will cheat, but Heifer's Gold will not. No, neither has an incentive to cheat. Heifer's Gold will cheat, but Milky Moos will not. Yes, both will cheat. $150,000 b. How does cheating impact the other cartel member? O Cheating hurts the member who does not cheat by decreasing its profits. Cheating does not impact the other member. Cheating helps the other cartel member by increasing its profits.Imagine there are two companies, East Wafer and West Wafer, which produce silicon wafers, the base component in the microchips which constitute the brains of our computers. Below is the daily demand for silicon wafers Suppose, for simplicity, East Wafer and West Wafer have the same constant cost structure, so maximizing total revenue maximizes profit. If East Wafer and West Wafer are able to form a cartel and collude without cheating on each other, what will be the price of a silicon wafer? $40 $50 $60 $70Suppose tuition fees for a university increase from £3,000 to £9,000. Afterthe increase, enrolment drops by 5%. e) Explain why setting up a cartel and maintaining collusion may be difficultin general.f) Explain how a maximum tuition fee of £9000 imposed by the governmentmay facilitate collusion between universities.
- What is a cartel? Explain the coordination problem it faces.1. Consider a market for water with two firms. We assume two firms can produce the good without any cost (TC= 0). The market demand schedule is given as: Quantity (gallon) Price ($) 30 90 40 80 50 70 60 60 70 50 80 40 90 30 100 20 110 10 Cartel: Assume that two firms are colluding, so both firms agree upon a contract that they produce the same amount of output. a. How much would each firm produce if they form the cartel? Why?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...
- What are some examples of cartels that failed over the years.Pleasant Island has two natural gas wells, one owned by Mack and the other owned by Tom. Each well has a valve that controls the rate of flow of gas, and the marginal cost of producing gas is zero. The table below gives the demand schedule for gas on this island. Price (dollars per unit) $100 88888; 70 50 30 20 10 0 Quantity Demanded (units per day) If Mack and Tom form a cartel and maximize their joint profits, the price of gas on Pleasant Island will be $ If Mack and Tom are forced to sell at the perfectly competitive price, the price of gas on Pleasant Island will be $ 5 15 25 35 45 55 65 per unit. (Enter your response as a whole number) per unit (Enter your response as a whole number)Why is the graph of the cartel drawn exactly the same as the monopoly graph?