Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
Question
Book Icon
Chapter 24, Problem 9QP
To determine

Explain the firms in tight markets to gain higher profit than the firms in loose markets.

Blurred answer
Students have asked these similar questions
A profit-maximizing price searcher will expand output as long as marginal revenue either exceeds or is equal to marginal cost, lowering its price or raising its price until the midpoint of their demand curve and highest total revenues are achieved.   Why are oligopolies able to earn both short-run economic profits and long-run economic profits, while price taking firms like perfect competitors can only earn short-run economic profits?
How do equilibrium prices in markets characterized by oligopoly compare with those in monopolies and perfectly competitive markets? They are higher than in monopoly markets and higher than in perfectly competitive markets. They are higher than in monopoly markets and lower than in perfectly competitive markets. They are lower than in monopoly markets and higher than in perfectly competitive markets. They are lower than in monopoly markets and lower than in perfectly competitive markets.
The diagram illustrate an industry under oligopoly consisting of 10 equal-sized firms, and a particular firm in that industry. Each of the firms produces an identical product. To what output will an individual firm be restricted if the price is to be maintained?Assume that all firms are permitted to produce the same level of output.  If the other firms stick to this output, how much would an individual firm be tempted to produce if it wished to maximize its own profit at the agreed price?  If it undercut the cartel price, what and output would maximize its profit (assuming the other members did not retaliate)?
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Microeconomics
Economics
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning