Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 10, Problem 13SQ
To determine
The cartel in the oligopoly.
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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:
Hi, could you solve this step by step and show where the numbers come from.
Hi, could you please help me solve this? I didn't understand where the numbers come from in the solutions. Could you explain step by step how to solve this? P.S. The textbook is called "Economics" by Krugman & Wells. Chapter 14, Problem 4.
Chapter 10 Solutions
Micro Economics For Today
Ch. 10.1 - Prob. 1YTECh. 10.5 - Prob. 1GECh. 10.6 - Prob. 1YTECh. 10 - Prob. 1SQPCh. 10 - Prob. 2SQPCh. 10 - Prob. 3SQPCh. 10 - Prob. 4SQPCh. 10 - Prob. 5SQPCh. 10 - Prob. 6SQPCh. 10 - Prob. 7SQP
Ch. 10 - Prob. 8SQPCh. 10 - Prob. 9SQPCh. 10 - Prob. 10SQPCh. 10 - Prob. 11SQPCh. 10 - Prob. 12SQPCh. 10 - Prob. 13SQPCh. 10 - Prob. 1SQCh. 10 - Prob. 2SQCh. 10 - Prob. 3SQCh. 10 - Prob. 4SQCh. 10 - Prob. 5SQCh. 10 - Prob. 6SQCh. 10 - Prob. 7SQCh. 10 - Prob. 8SQCh. 10 - Prob. 9SQCh. 10 - An oligopoly is a market structure in which a. one...Ch. 10 - Prob. 11SQCh. 10 - A common characteristic of oligopolies is a....Ch. 10 - Prob. 13SQCh. 10 - Prob. 14SQCh. 10 - Prob. 15SQCh. 10 - Prob. 16SQCh. 10 - Prob. 17SQCh. 10 - Prob. 18SQCh. 10 - Prob. 19SQCh. 10 - The kinked oligopoly demand curve is a result of...
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- The graph below shows the demand for Cosmic shampoo. Suppose there are no fixed costs and marginal cost is a constant $80.a. What are the perfectly competitive price and output? Price: $ Output: 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:arrow_forwardCan you help me solve this please?arrow_forwardCan you do a & b pleasearrow_forward
- 1. If Sam and Jack each produce the same quantity of appointments as would be produced in perfect competition, the total quantity of appointments is ___ the price per lesson would be ____ , and the economic profit of Sam and Jack would be____? 2. If Sam and Jack form a cartel and produce the same quantity of appointments as would be produced in a monopoly, the total quantity of appointments would be ____, the price per appointment is ____ and the economic profit of Sam and Jack is ____? 3. Would Sam and Jack have an incentive to break the cartel agreement and lower their price to increase the number of tennis lesson appointments?arrow_forwardThe 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. $80arrow_forwardConsider the curve in Figure, which shows the market demand, marginal cost, and marginal revenue curve for firms in an oligopolistic industry. In this example, we assume firms have zero fixed costs. a. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the carte supply? How much profit will the cartel earn? b. Suppose now that the cartel breaks up and the oligopolistic firms compete as vigorously as possible by cutting the price and increasing sales. What will be the industry quantity and price? What will be the collective profits of all firms in the industry? c. Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.arrow_forward
- Which of the following would most likely create the setting for an Oligopoly ? A. The government grants T'Challa and Nakia a patent for their respective vibranium-based electric car batteries. B. Market Demand is two or more times less than the quantity needed to produce at the minimum of the Average Cost Curve. C. Market Demand is two or more times greater than the quantity needed to produce at the minimum of the Marginal Cost Curve. D. Insumountable technological difficulty associated with producing similar products serves as an effective Barrier to Entry. E. All of the Abovearrow_forwardII. Answer the following T/F questions a. b. C. d. e. Tor F, an oligopolist, like the monopolist, earns LR economic profits. Tor F, retail clothing stores are classified as an oligopoly market structure. T or F, the monopolistic competitor and the oligopolist do not engage in non-price competitive strategies. T or F, the oligopolist reaches both productive and allocative efficiency in the long run. T or F, a monopolistic competitor sells a differentiated product giving them the ability to have some price control.arrow_forwardThe graph below shows the demand for Cosmic shampoo. ◻ Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $ Output: 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: Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- What is a difference between oligopoly and monopolistic competition? Oligopolists consider the actions and reactions of their competitors. Oligopolists only compete with monopolists. U Monopolistic competitors act like monopolies and oligopolists do NOT. Monopolistic competitors can make long-run profits.arrow_forwardAnswer d pleasearrow_forwardBREADBASKET High Low High 60,60 30,15 QUICKLUNCH Low 15,30 30,30 What will happen to the equilibrium of the two company if they were to form a cartel and cooperate on setting their prices? a. Quicklunch charging a high price and Breadbasket charging a low price. b. Quicklunch charging a high price and Breadbasket charging a high price. Quicklunch charging a low price and Breadbasket charging a high price. d. Quicklunch charging a low price and Breadbasket charging a low price. a. C.arrow_forward
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