Multiple ChoiceX would find it profitable to cut its price, provided Y also cut its price.ОY would find it profitable to cut its price, provided X also cut its price.ОY would find it profitable to raise its price by $1, provided X would also raise its price by $1.оboth firms would profit by simultaneously lowering their prices by $1. X's PricesY's PricesY$6$5$4121415$7161513611133$61916147910$5181715Refer to the profits-payoff table for a duopoly. If initially firm X's price was $6 and Y's price was $5,

Option (b) is the right response to the query about the profits-payoff table for a duopoly. If X…

Answered: Multiple Choice X would find it…

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5PA

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Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?
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Explain the general meaning of the following profit payoff matrix for oligopolists C and D. All profit figures are in thousands. In view of your answer to 6b, explain why price collusion is mutually profitable. Why might there be a temptation to cheat on the collusive agreement?
For example, the lower left cell of the matrix shows that if Full Coop advertises and Lucky Bird does not advertise, Full Coop will make a profit of $14 million, and Lucky Bird will make a profit of $3 million. Assume this is a simultaneous game and that Lucky Bird and Full Coop are both profit- maximizing firms. If Lucky Bird chooses to advertise, it will earn a profit of $ advertise. million if Full Coop advertises and a profit of $ million if Full Coop does not If Lucky Bird chooses not to advertise, it will earn a profit of $ not advertise. million if Full Coop advertises and a profit of $ million if Full Coop does S If Full Coop advertises, Lucky Bird makes a higher profit if it chooses If Full Coop doesn't advertise, Lucky Bird makes a higher profit if it chooses Suppose that both firms start off by deciding not to advertise. If the firms act independently, what strategies will they end up choosing? Both firms will choose not to advertise. O Lucky Bird will choose not to…
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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.
Again, please consider this table, which describes a firm that is part of an oligopoly: Marginal Quantity Price Total Cost Cost Total Revenue Marginal Revenue Profit/Loss 100 $4 $120 200 $3 $320 A 300 $2.50 $570 400 $2 $870 B C Carefully following numeric instructions, enter the value for Cell B.
Only two firms, Acme and Stuff Inc., sell a particular product. The table below shows the demand curve for their product. Each firm has the same constant marginal cost of $10 and zero fixed cost (so MC-ATC=$10). Price Quantity Total Revenues 10 70 65 60 55 50 45 40 28889 35 30 25 20 15 10 15 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400 0 If Acme and Stuff Inc are able to collude, how much will Acme produce? 6500 12000 16500 20000 22500 24000 24500 24000 22500 20000 16500 12000 6500 0
Economics How would the Coumot equilibrium change in the airine example if American's marginal cost were $100 and United's were $2007 The demand the duopoly quantity-setting firms face is Q- 339 -p with an inverse demand function of p- 339-19A1qu- where qa is the quantity produced by American and qu is the quantity produced by United. The Cournot-Nash equilibrium occurs where qa equals and qu equals (enter numeric responses using integers)

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