Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Chapter 14, Problem 3.3P
To determine
Business strategies.
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Students have asked these similar questions
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $20, $10,
$5, and $3 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $10, $20, $30, $38, and $44 (one buyer at
each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Quantity Demanded
Quantity Supplied
(widgets)
Price
($ per widget)
$3
$5
$10
$20
$30
$38
$44
(widgets)
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $20, $12, $8, $4, and $2 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $8, $12, $20, $32, and $44 (one buyer at each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Price
Quantity Demanded
Quantity Supplied
($ per widget)
(widgets)
(widgets)
$2
$4
$8
$12
$20
$32
$44
In this market, the equilibrium price will be______ per widget, and the equilibrium quantity will be ___ (#) widgets.
In mid-2010, Saudi Arabia and Venezuela (both members of OPEC) produced an average of 8 million and 3 million barrels of oil a day, respectively. Production costs were about $20 per barrel, and the price of oil averaged $80 per barrel. Each country had the capacity to produce an extra 1 million barrels per day. At that time, it was estimated that each 1-million-barrel increase in supply would depress the average price of oil by $10. Consider the competition between Saudi Arabia and Venezuela as a game.
a) Construct the payoff table.
b) Do countries have a dominant strategy?
c) What actions should each country take and why?
Chapter 14 Solutions
Principles of Economics (12th Edition)
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