The graph below shows the demand for Cosmic shampoo. Costs and revenues 60 50 40 30 20 10 0 200 400 600 800 1000 Quantity per period Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $30 Output: 500 b. What are the cartel (monopoly) price and output? Price: $[ Output: [ c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? R decimal place. Price: $ Output:
The graph below shows the demand for Cosmic shampoo. Costs and revenues 60 50 40 30 20 10 0 200 400 600 800 1000 Quantity per period Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $30 Output: 500 b. What are the cartel (monopoly) price and output? Price: $[ Output: [ c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? R decimal place. Price: $ Output:
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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![The graph below shows the demand for Cosmic shampoo.
Costs and revenues
60
50
40
30
20
10
0
200 400 600 800 1000
Quantity per period
Suppose there are no fixed costs and marginal cost is a constant $30.
a. What are the perfectly competitive price and output?
Price: $[
Output: 500
b. What are the cartel (monopoly) price and output?
Price: $[
Output:
c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1
decimal place.
Price: $
Output:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff3ec7717-74c8-421d-9f72-e5e98c3c61c9%2F2c84f747-a7c7-4850-968d-b3de25627e52%2Fzk9zdy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The graph below shows the demand for Cosmic shampoo.
Costs and revenues
60
50
40
30
20
10
0
200 400 600 800 1000
Quantity per period
Suppose there are no fixed costs and marginal cost is a constant $30.
a. What are the perfectly competitive price and output?
Price: $[
Output: 500
b. What are the cartel (monopoly) price and output?
Price: $[
Output:
c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1
decimal place.
Price: $
Output:
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