The U.K. Office of Fair Trading has recently unveiled a plan that will offer immunity from prosecution to firms who blow the whistle on their co-cartel conspirators
Q: Many economists attribute the troubles of the Great Recession in housing markets to a) an increase…
A: Stock market crash, which lead to an inquiry at banks, where the sub-prime mortages problems were…
Q: For a Saturday matinee, adult tickets cost $7.50 and kids under 12 pay only $5.00. If 110 tickets…
A:
Q: Givenu(x)=x0.5 Lottery A Probability 0.50 0.25 0.25 Outcome 64 16 0 For automatic grading, give…
A: Givenu(x)=x0.5 Lottery A Probability 0.50 0.25 0.25 Outcome 64 16 0
Q: 8. From the following graph, show the equilibriums under each scenario. Market is in equilibrium at…
A: Monopoly can be defined as the market structure that can be characterized by one seller who is…
Q: 1 2 F B D Consumer Goods Refer to the above diagram. A shift in the production possibilities curve…
A: Production possibility curve is the locus of different combinations of two goods that an economy can…
Q: Does the game has any Nash equilibrium ? If your answer is "Yes", then you are required to identify…
A:
Q: A firm must decide between two designs. Their effective income tax rate is 33%, and MACRS…
A: Given information Two design Design A: Initial investment =$940000 Net revenue=$260000 Salvage…
Q: Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs?…
A: Consumers surplus refers to the difference between the willingness to pay and the actual price of…
Q: A projet cost $500000 and yield annually a profit of $80000 after depreciation @ 12 % p.a but before…
A: Payback period is the the amount of time it takes to recover the cost of an investment , Here we…
Q: 6 Consider Nowehereland, a small open economy. Suppose business people in Nowhereland are…
A: Introduction When the government lowers taxes in a small open economy, domestic demand rises while…
Q: H6. Which of the following transactions should or should not be counted in GDP? Answer why or why…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: All else being equal, when foreign incomes fall, U.S. aggregate a) demand will shift to the right. O…
A: Aggregate demand curve shows negative relationship between price level and real output.
Q: Mariam has a small bakery. She spends 200KD a month to rent a building for his company, 600KD a…
A: Mariam is using both fixed and varaiable inputs. Where labor is the only available input for her.
Q: Cooperation in a Finite Game We have seen that if we play the Prisoners' dilemma with finite…
A: A Finite Game is defined as a game where there are fixed number of players, the players have a fixed…
Q: Consider the production possibilities frontier (PPF) shown in the graph below to answer the next…
A: Production possibilities frontier shows different combinations of two goods that can be produced…
Q: The set of lines below reflect information about the cost structure of a firm. Use the figure to…
A: In a market, a firm's cost curves helps to analyze its production efficiency at different output…
Q: 1. Suppose a worker can survive by daily consumption of $40 value of commodities as determined by…
A: Given information Survival daily consumption worth for labor=$40 Value of 4 hours of work for labor=…
Q: specify which issues below are “Distributive”, “Compatible”, or “Integrative”. 1. First-year…
A: A number of differences in interests and objectives leads to interdependence of several players.…
Q: What are the concepts of styles of religious coping? And do they have an explanation for the…
A: The pleasure found in religious rituals is one of the most common ways that people cope with trauma.…
Q: A debt of P40,000, whose interest rate is 15% compounded semiannually, is to be discharged by a…
A: The principal amount and the interest earned over time are used to compute compound interest. The…
Q: lend at the interest rate on reserve balances rate and borrow at the federal funds rate, earning a…
A: The correct answer is given in the second step.
Q: Since the Russia-Ukraine conflict escalated in February 2022, many businesses and investors have…
A: A actual rate is a percentage rate which has been adjusted to exclude the impacts of inflation to…
Q: Q 2/ In a certain city, the number of power outages per month is a random variable, having a…
A: N = 22 and p=0.7 and q= 0.3
Q: For a Saturday matinee, adult tickets cost $7.50 and kids under 12 pay only $5.00. If 110 tickets…
A: Expenditure on the good refers to price of the good multiplied by the quantity purchased.
Q: You were promoted as the manager of a new Clean-Well Sanitary Store that sells cleaning and…
A: Here we can assume the cross elasticity of demand where the proportionate change in price of one…
Q: When making decisions about saving and borrowing, people care most about O a) the nominal rate of…
A: In an economy, people make their consumption and savings decisions based on their income level and…
Q: Consider a representative university student who decides how much time to spend on study. Let us…
A: Given information There are 2 representative university students - Bruno & Angela Bruno Use…
Q: Is the lottery a fair way to allocate economic resources
A:
Q: 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A: Total Cost = Total Fixed Cost + Total Variable Cost Breakeven implies where the profit is 0 and the…
Q: In 3-5 sentences, evaluate if the United States has been a leader in the global economy in recent…
A: The U.S. is a mixed economy, displaying qualities of both capitalism and socialism. Such a mixed…
Q: Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 215 -…
A: Given; Demand function; Pb=215-7Qb Marginal Cost for firm1; MC1= 3Q Marginal Cost for firm2; MC2= 9Q…
Q: a machine costs 80,000 and the salvage value after 20 years is 20,000. find the equivalent annual…
A:
Q: Q 1/ Given a random variable having the normal distribution with u=16 and o?=1.5625. Find the…
A: We have mean value 16 and standard deviation 1.25
Q: The demand theory of discrimination focuses on which of the following? The demand for female labour…
A: The demand theory of discrimination states that discrimination occurs when despite the same…
Q: Alternative A. Build a coal-powered generating facility at a cost of $20,000,000. Annual power sales…
A: PLEASE FIND THE ANSWER BELOW. BENEFIT-COST RATIO (BCR): The benefit-cost ratio (BCR) is a ratio…
Q: Calculate the lower confidence limit (LCL) and upper confidence limit (UCL) of the mean for each of…
A: We have a: x=70, n=69, σ=30 and α=0.05 “Since you have asked multiple questions, we will solve the…
Q: (OTHER SOLUTION CONCEPTS) Consider the 4x3 game depicted below. A Г1,2 1,2 0,3] B 4,0 1,3 0,2 с 13,1…
A: Minimax strategy is when the player is minimizing one’s own maximum loss Here, player 2 minimizes…
Q: Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays…
A: The answer is as follows:-
Q: Is the lottery a fair way to allocate economic resources? Discuss, referring to both of the…
A: "Investing in stocks is like gambling in a casino" True, both investing and gambling include some…
Q: A Cost $4000 $2000 $6000 $1000 S9000 Annual benefit 639 410 761 117 750 Useful life, in years 20 20…
A: MARR=6%
Q: If the price of industrial plastic injection molding machines rose by 20% and the price of oranges…
A: CPI is the weight average of prices of a basket of consumer goods.
Q: The conventional view that economics takes on cheating is that one decides to cheat when there is a…
A: The most well-known reàson students say of dishonesty is to use àll the time they get. Fortunàtely…
Q: U.S. real GDP is substantiality higher today than it was 60 years ago. What does this tell us, and…
A: Real gross domestic product is an inflation-changed measure that mirrors the worth of generally…
Q: During the Great Recession, the U.S. aggregate demand curve shifted to the left, in part, because a)…
A: Recession refers to a period of time where fall in economic activity can be observed all across the…
Q: The next four questions refer to the following supply and demand graphs: II II IV D, D D. 33.…
A: Since you have posted a multiple question, we will solve first question for you. In case you want…
Q: Sometimes understanding of ISLM becomes clearer when one works through the algebra. This question is…
A: The IS-LM model depicts the junction of commodities and the money market as a graph. Investment and…
Q: PROBLEM NO.1 Determine the ordinary simple interest on P700 for 8 months and 15 days if the rate of…
A: Given: Amount=P 700 Interest rate=15% Duration=8 months and 15 days
Q: What would you expect the relationship to be between selling a high-risk product and a low-risk…
A: When talking about personal selling, it is the form of business in which an individual or am…
Q: c) Suppose that money-supply growth is higher in China than it is in Canada. What does…
A: since you have asked multiple questions and according to policy we can solve only 1 question and for…
Q: Pat sells widgets in a perfectly competitive market. Prices for widgets are lower in July than they…
A: Perfectly competitive market: - it is a market condition where there are many buyers and many…
Step by step
Solved in 2 steps with 2 images
- The cartel of copper exporting countries is called COPEC. As part of an international trade agreement, the United States has agreed to buy all the copper that COPEC wants to sell to the United States at a constant price of $100 per tonne. COPEC also sells copper in Europe at a price of $150 per tonne. COPEC acts just like a monopolist; if it finds it is profit maximising to sell in the United States at $100 per tonne and simultaneously to sell in Europe for $150 a tonne, what is the price elasticity of demand of COPEC’s copper in the European market? Carefully explain all the steps in the derivation of the value of the elasticity including the underlying economic theory approach behind itThe cartel of copper exporting countries is called COPEC. As part of an international trade agreement, the United States has agreed to buy all the copper that COPEC wants to sell to the United States at a constant price of $100 per tonne. COPEC also sells copper in Europe at a price of $150 per tonne. COPEC acts just like a monopolist; if it finds it is profit maximising to sell in the United States at $100 per tonne and simultaneously to sell in Europe for $150 a tonne, what is the price elasticity of demand of COPEC’s copper in the European market?Suppose that two identical firms produce widgets and that they are the only firms in the market. The average and marginal cost is €6 for each firm. Price is determined by the following demand curve: P = 30 – Q where Q = Q1 + Q2. Suppose the two firms combine together and form a cartel. The output produced by each firm in the cartel is (assuming that they split the cartel output equally between them) A. 6 B. 12 C. 8 D. 4 Two identical firms compete in a market to sell a homogenous good with the following inverse demand function: P = 600 – 3Q. Each firm produces at a constant marginal cost of €300 and there are no fixed costs. The price that each firm in the Cournot equilibrium will charge is A. 400 B. 500 C. 300 D. 450
- 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 $70The table shows a hypothetical demand schedule for monosodium glutamate (MSG). Ajinomoto holds 5050% of the market, Jiali holds 3030% of the market, and Quingdao holds 2020% of the market. Suppose the three firms agree to form a cartel to fix production of monosodium glutamate. Assume marginal cost equals zero, and the output is split equally across the firms. What quantity maximizes the cartel's profit? Price of MSG ($ per pound) Quantity of MSG demanded (millions of pounds) $8$8 00 $7$7 2020 $6$6 3030 $5$5 4040 $4$4 6060 $3$3 9090 $2$2 110110 $1$1 180180 $0$0 300300 million pounds million pounds Suppose Ajinomoto's marginal cost remains equal to zero, but for Jiali and Quingdao, marginal costs rise above zero. How would this affect the incentive of Ajinomoto to act noncooperatively and change its output? Ajinomoto will not have an incentive to change its output. Ajinomoto will have an incentive to increase its output of MSG.…A certain rural village has numerous small farms which raise livestock. There are two large and equally sized landowners, Jimmy and Bob, which produce hay for the farmers’ animals. Below is the daily village demand for hay Suppose, for simplicity, that Jimmy and Bob have the same constant cost structure, so maximizing total revenue maximizes profit. If Jimmy and Bob initially form a cartel, but subsequently succumb to the temptation to cheat on each other, what will be the Nash equilibrium? Jimmy and Bob will each earn a daily profit of $625. Jimmy will earn a daily profit of $700 and Bob will earn a daily profit of $500. Bob will earn a daily profit of $700 and Jimmy will earn a daily profit of $500. Jimmy and Bob will each earn a daily profit of $525.
- Breakdown of a cartel agreement Consider a town in which only two residents, Darnell and Eleanor, own wells that produce water safe for drinking. Darnell and Eleanor can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. (base to table 1) Suppose Darnell and Eleanor form a cartel and behave as a monopolist. The profit-maximizing price is $_____ per gallon, and the total output is _____ gallons. As part of their cartel agreement, Darnell and Eleanor agree to split production equally. Therefore, Darnell's profit is $_______, and Eleanor's profit is $______. Suppose that Darnell and Eleanor have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Darnell says to himself, "Eleanor and I aren't the best of friends anyway. If I increase my production to 45 gallons more than…A film called The 33 tells the story of 33 coal miners in Chile who were trapped inside a collapsed coal mine for more than two months. While trapped inside the mine, the miners agreed that if they ever got out alive, they would sell their story as a group, and that none of them would tell their stories individually. In essence, they formed a cartel, agreeing to sell just one big story for a lot of money rather than each miner selling his own individual story. As it turned out, they did get out alive and they did stick to their agreement. None of the miners sold his story individually. That is, the “cartel” formed by these trapped coal miners worked; nobody cheated. Explain why this cartel, unlike almost all others, was successful. This is not a research question; you don’t have to have the factually correct answer to earn full credit on this question. Rather, a full-credit answer will explain the conditions under which a cartel will be successful and then indicate the specifics of…Why has the OPEC oil cartel succeeded in raising prices substantially while the CIPEC copper cartel has not? What conditions are necessary for successful cartelization?
- Many European governments are reluctant to allow online betting in an attempt to protect their national gambling businesses. A recent study found that seven countries out of the 27 in the European Union banned online gambling. Of the other 20 only 13 have opened their markets to competition; in the rest gambling is dominated by monopolies owned or licensed by the government. In the Netherlands, for example, residents can only place online bets with a state monopoly: De Lotto. The Ministry of Justice even warned banks in the country that they could be prosecuted if they transferred money to online gambling companies. Other countries have ordered online betting companies to block access to their sites. Their governments argue that this is to protect people from gambling excessively. However the revenue they gain from their own monopolies should not be ignored as a possible motive. Questions If governments believe that gambling is bad for their citizens then in economic terms how would…In the United States cartels areThe table shows a hypothetical demand schedule for monosodium glutamate (MSG). Ajinomoto holds 50% of the market, Jiali holds 30% of the market, and Quingdao holds 20% of the market. Suppose the three firms agree to form a cartel to fix production of monosodium glutamate. Assume marginal cost equals zero, and the output is split equally across the firms. What quantity maximizes the cartel's profit? Price of MSG ($ per pound) Quantity of MSG demanded (millions of pounds) $8 0 $7 20 $6 30 $5 40 $4 60 $3 90 $2 110 $1 180 $0 300 __________million pounds