Two Bistro restaurants, Bistro 1 and Bistro 2, have demand functions for meals defined as Q1 = 44 – 2P1 + P2 and Q2 = 44 – 2P2 + P1. Bistro 2 cost per dish is $5.50, but Bistro 1 cost per dish is $8. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Complete the following table. P1 P2 Q1 Q2 Profits Bistro 1 Profits Bistro 2 Bistro 1 colludes, Bistro 2 cheats w/ QDC Bistro 1 colludes, Bistro 2 cheats w/
Two Bistro restaurants, Bistro 1 and Bistro 2, have demand functions for meals defined as Q1 = 44 – 2P1 + P2 and Q2 = 44 – 2P2 + P1. Bistro 2 cost per dish is $5.50, but Bistro 1 cost per dish is $8. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round if values are used to complete other calculations. Complete the following table. P1 P2 Q1 Q2 Profits Bistro 1 Profits Bistro 2 Bistro 1 colludes, Bistro 2 cheats w/ QDC Bistro 1 colludes, Bistro 2 cheats w/
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Two Bistro restaurants, Bistro 1 and Bistro 2, have demand functions for meals defined as Q1 = 44 – 2P1 + P2 and Q2 = 44 – 2P2 + P1. Bistro 2 cost per dish is $5.50, but Bistro 1 cost per dish is $8.
Instructions: Use no decimals. Use the average cost to calculate
Complete the following table.
P1 |
P2 |
Q1 |
Q2 |
Profits Bistro 1 |
Profits Bistro 2 |
|
Bistro 1 colludes, Bistro 2 cheats w/ QDC |
|
|
|
|
|
|
Bistro 1 colludes, Bistro 2 cheats w/ QBRF |
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