Consider a market with 4 firms. If all 4 firms enter into a cartel arrangement, then the demand curve facing the cartel is: a. identical to the monopolist's demand curve b.. perfectly elastic c. perfectly inelastic d. the marginal revenue curve
Q: Problem 4. (Bundling) Consider a case where there are three consumers with respective valuations for...
A: Answer - "Thank you for submitting the question. But, we are authorized to solve only 3 sub parts. F...
Q: Given the Aggregate Expenditure schedule for Country A below. Calculate national income and net capi...
A: We know,National income=C+I+G+(X-M)Y=C+I+G+(X-M)Now,Y=34141+17926+9042+(36872-26812)Y=71,169
Q: All people who have equivalent formal education earn similar incomes." Do you agree or disagree with...
A: Equivalent formal education The term formal education refers to an organized and uniform education s...
Q: Total benefits and total costs of fishing are illustrated in the figure below. Refer to the figure b...
A: Answer: (1). Economically efficient level of effort: is the level of effort where the difference bet...
Q: For a price searcher utilizing a simple (uniform) pricing scheme, which statement best expresses the...
A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.
Q: 1. A company considers purchasing a new machine that costs P600,050.00. It is projected that the mac...
A: Net present value = Present value of benefits - Present value of costs
Q: c. What is the weakness of CPI inflation? If a price of pork is more expensive while the price of ch...
A: In an economy, consumer price index is used as the tool of measuring inflation rate over a period of...
Q: For a firm with a downward-sloping demand curve, which of the following is true at the profit-maximi...
A: Imperfect competitive firms face a downward sloping demand curve.
Q: Question 2 Suppose that an economy has the following average annual growth rates of its real GDP Y, ...
A: Money supply (M) in an economy is equal to the nominal GDP divided by the velocity (V), where nomina...
Q: Gooble Pay is a pay-per-view movie provider that has zero marginal cost and faces the following (inv...
A: Given; Demand function; P=20-0.4Q Marginal Cost; MC=0 At optimal pricing:- ...
Q: The tax cuts of 2017 increased the 2018 disposable income of households by roughly $200 billion. If ...
A: Disposable income: Disposable income is also known as disposable personal income (DPI), is the amoun...
Q: n initial investment of P530,000 is estimated to bring in yearly cash inflow of P52,000 for 6 years....
A: The initial investment for the project is = $530,000 Expected cash inflow for the next 6 years = $52...
Q: The following are the National Income Account data of the Philippines (figures are in Billions of Pe...
A: Given: Merchandise imports=17 Personal consumption expenditure=217 Note: Due to multiple subparts be...
Q: A firm has $200 million in total revenue and explicit costs of $190 million. Suppose its owners have...
A: Opportunity cost =10% of $100=$10 Economic profit =total revenue - total cost(explicit + implicit) ...
Q: Topic: Unemployment and Inflation Explain three types of unemployment, their meaning and exam...
A: Unemployment is characterized as a circumstance where an individual of working age can't find a new ...
Q: Research indicates that promoters may fall into one of twoclasses: focused or dispersed. How do thes...
A: The promoters are the regulator of the ‘Gene Transcription’ process. The eukaryotic promoters are su...
Q: 1. What cuve connects A,B and C 2. Is good 1/2 a gross compliment/gross substitute to good 1/2 (Pic...
A: Here in the above diagram, the straight line shows the budget constraint of the consumer. The curve ...
Q: Which of the following statements about Nash Equilibria in a two-player one-shot simultaneous game i...
A: The Nash Equilibrium could be achieved when one of two or both players have a dominant strategy. But...
Q: If average total costs increase when the output level increases, then there are diseconomies of scop...
A: The expenses that are being incurred for running a business and carrying out its various transaction...
Q: Harley worked for many years to save enough money to start his own residential landscape design busi...
A: ERR or External rate of return"it is the rate of return on a project where any excess cash from a pr...
Q: What is your understanding of capitalism? How is capitalism compared to liberalism and neoliberalism...
A: 1) What is Capitalism ? Capitalism is a economic framework where private people or organizations own...
Q: Suppose you wish to borrow $800 for four weeks and the amount of interest you must pay is $20 per $1...
A: The Annual Percentage Rate (APR) is the cost of borrowing money stated as a percentage each year, in...
Q: Genovia has experienced exceptional growth in recent years. Its GDP per capita (or Income) has incre...
A: Given:Initial income=io=$30,000New income=i1=$50,000Initial demand for personal carss=Do(PC)=450,000...
Q: Critically/quantitatively evaluate the following statement (true, false or uncertain): • In a linear...
A: Ordinary least square method is used to regress dependent variable on independent variables. Here on...
Q: According to game theory, what do firms try to do? maximize their profits by acting in ways to minim...
A: Game theory helps in social situations where the competing players considers all the strategies befo...
Q: Graph the following a. Flood destroys the rice crops. Demand remains constant. Show effects on marke...
A: Since you have posted a question with multiple parts , I have solved the first three sub parts for y...
Q: TABLE 8-1 Revenue and Cost Data for a Perfectly Competitive Firm Daily Output Price Total Revenue TF...
A:
Q: Because there isn't one single measure of inflation, the government and researchers use a variety of...
A: CPI and GDP deflators will be examined in the ensuing discussion. While the GDP deflator considers t...
Q: What is the elasticity of demand if the inverse curve of demand is P = (20 - 2Q)1/2 and 2 units are ...
A: Given Demand function: P=20-2Q1/2 .... (1) The formula for price elasticity of demand: e=d...
Q: 1. Real versus nominal GDP Consider a simple economy that produces two goods: cupcakes and muffins. ...
A: Nominal GDP is the sum of product of current year quantity and current year price. Real GDP is the s...
Q: QUESTION 11 Using the Rule of 70, a country will roughly double its GDP in thirty-five years if its ...
A: According to rule 70,Doubling time=70iwhere,i=annual growth rate
Q: Adco industries makes heavy machinery and they have a specialized soldering machine. This machine re...
A: Given that; First cost of soldering machine =150000 Annual maintenance = 5000 Salvage value= 11000 L...
Q: 18) Which of the following options best describes tax incidence? A) It equals to the loss in the soc...
A: Imposition of tax results in decrease in social surplus as socially efficient quantity is not produc...
Q: Compare and contrast the different approaches to environmental policymaking
A: Approaches to environmental policy making:- 1) Lawsuits 2) Economic policy tools 3) Command and cont...
Q: Apparel manufacturer Nike produces high-end and low-end versions of their running shirts. They estim...
A: MC=$30High-end shirts: P = 130 - 2QH TR=P×QTR=(130-2Q)QTR=130Q-2Q2Now,MR=∂TR∂QMR=130-4QProfit-maximi...
Q: Below presents the sustainable yield curve (measured by tons) for a fishery as a function of the num...
A: Given, Effort = Number of boat fishing x Number of weeks per boat. a) In the first figure, the y-axi...
Q: 3. Suppose the following production function is given for a Solowian type of economy: Y = K°L- (a(2 ...
A: The production function of a business is the link between the inputs it consumes and the output it g...
Q: Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 ...
A:
Q: Question 2 Imagine a loan contract with a nominal interest rate of 17 percent. The expected inflatio...
A: a) Ex ante real interest rate = nominal interest rate - expected inflation ...
Q: . WHICH OF THE DIFFERENT THEORIES OR APPROACHES THAT BEST DESCRIBE THE ECONOMIC SITUATION OF THE DEV...
A: Development economics is a discipline of economics that focuses on helping developing countries impr...
Q: The Philippine debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16%...
A: Let us firstly calculate debt on every working individual . 12 trillion = 12 million millions ( 1 ...
Q: Below are the short-run data of a representative firm in a perfectly competitive industry. The marke...
A: In perfectly competitive market price is constant so it is equal to marginal revenue. Firms maximise...
Q: PLEASE FILL IN THE CHART BELOW FOR THE ARTICLE!! Microeconomics For the article, write the number ...
A: Supply Curve refers to the various levels of quantity demanded that firms or producers of a good or ...
Q: Consumers with a high willingness to pay enjoy more surplus under a single-price monopoly. are indif...
A: Consumer with high willingness to pay - enjoy more surplus under first degree discrimination
Q: (1) Discuss the difference(s) between marginal rate of substitution and marginal rate of technical s...
A: Since you have posted multiple questions , I have solved the first one for you. If you want any spec...
Q: Q2) Aggregate demand and supply a) Explain economic fluctuations in short and long run. b) What is O...
A: The curve that depicts various quantities of goods being demanded by individuals by various customer...
Q: define, explain, and analysis the drivers and impacts of trade such as dynamics of money and exchang...
A: Introduction Trade is when things exchanged with one another in the country or out of country. Excha...
Q: What is the difference between macroeconomics and microeconomics?
A: Microeconomics is the study of people's and enterprises' decisions about resource allocation and the...
Q: Aggregate demand will NOT increase when: A) household wealth rises but prices are constar B) governm...
A: Aggregate demand"it is a measurement of total amount of demand for all finished goods and services p...
Q: factors which could have an impact on the demand and supply ofoil in the near term. whether on bala...
A: Crude oil is critical to the functioning of developed countries, with 84,249,000 barrels consumed ev...
Consider a market with 4 firms. If all 4 firms enter into a cartel arrangement, then the
a. identical to the monopolist's demand curve
b.. perfectly elastic
c. perfectly inelastic
d. the marginal revenue curve
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Question 2Bob and Alice are duopoly competitors for ice cream in Venice Beach,CA. Market demand for ice cream is p = 1000 − 2Q and both Alice’sand Bob’s costs of production are identical and given by C(q) = 4q.Calculate market price and quantity ifc) Alice and Bob decide to coordinate their decisions in a cartel (i.e.to build a monopoly) and to equally share profits.Question 2Bob and Alice are duopoly competitors for ice cream in Venice Beach,CA. Market demand for ice cream is p = 1000 − 2Q and both Alice’sand Bob’s costs of production are identical and given by C(q) = 4q.Calculate market price and quantity ifa) Alice and Bob are in Cournot competition.b) Alice and Bob are in Bertrand competition.c) Alice and Bob decide to coordinate their decisions in a cartel (i.e.to build a monopoly) and to equally share profits.A duopoly faces an inverse market demand function P(y) = 120 − y. Firm1 has a marginal cost of $40. And Firm 2’s marginal cost is $20.a. Calculate the output of each firm, market output, and profit in the Cournotoutcome.b. Calculate the output of each firm, market output, and profit when two firmscollude and become a cartel and the total profit is shared equally between two firms.Argue whether this cartel structure is economically meaningful.
- A group of firms that gets together to make price and output decisions is called. Single choice. a.a non-collusive oligopoly. b.price leadership. c.a cartel. d.a concentrated industry Which of the following industries is the best example of monopolistic competition?. Single choice. a.Wheat b.Restaurant d.Automobile c.Water service Which of the following is a characteristic of pure monopoly?. Single choice. a.one seller of the product b.low barriers to entry c.close substitute products d.perfect information Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of:. a.$500,000 and an economic profit of $200,000. b.$400,000 and an economic profit of $200,000. c.$300,000 and an economic profit of $400,000. d.$200,000 and an economic profit of $500,000.…Oligopolies and Cartels A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000 per diamond, and the demand for diamonds is described by the following schedule: Price Quantity (Dollars) (Diamonds) 8,000 5,000 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 3,000 10,000 2,000 11,000 1,000 12,000 If there were many suppliers of diamonds, the price would be $______ per diamond and the quantity sold would be _________diamonds. If there were only one supplier of diamonds, the price would be$______per diamond and the quantity sold would be ________diamonds. Suppose Russia and South Africa form a cartel. In this case, the price would be $__________ per diamond and the total quantity sold would be ______ diamonds. If the countries split the market evenly, South Africa would produce ________ diamonds and earn a profit of $________. If…Oligopolies and Cartels A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000 per diamond, and the demand for diamonds is described by the following schedule: Price Quantity (Dollars) (Diamonds) 8,000 5,000 7,000 6,000 6,000 7,000 5,000 8,000 4,000 9,000 3,000 10,000 2,000 11,000 1,000 12,000
- Question 4 Consider a duopoly market with 2 firms. Aggregate demand in this market is given by Q = 500 – P, where P is the price on the market. Q is total market output, i.e., Q = QA + QB, where QA is the output by Firm A and QB is the output by Firm B. For both firms, marginal cost is given by MCi = 20, i=A,B. Assume the firms compete a la Cournot.Note that marginal revenue for both firms is given by MRA=500-2QA-QB, MRB=500-QA-2QB. Describe what a best-response curve is and how to find it. Derive the best-response function for each firm. What are the equilibrium quantities? What is the total quantity supplied on this market? What is the equilibrium price in this market?ASAP Bertrand competition with differentiated goods. Firms 1,2 with demand functions Q1 = 10 – 3P1 + 2P2 , Q2 = 10 – 3P2 + 2P1 and marginal costs C1 = 6, C2 = 4. i) Find the Nash Equilibrium prices, quantities and individual profits. ii) The firms agree to form a cartel. Find the prices, quantities, cartel profits and individual profits under the cartel agreement. iii) Which firm has a reason to suggest the cartel, and is the cartel sustainable or not? Depict and explain the cartel game in an appropriate way. If it is sustainable, explain. If no, explain and suggest a mechanism that can make it sustainable a) if the deal is for one period only b) if the deal is renewed each period over 5 periods.Oligopolies and Cartels A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $2,000 per diamond, and the demand for diamonds is described by the following schedule: Price Quantity (Dollars) (Diamonds) 8,000 2,000 7,000 3,000 6,000 4,000 5,000 5,000 4,000 6,000 3,000 7,000 2,000 8,000 1,000 9,000 If there were many suppliers of diamonds, the price would be$______ per diamond and the quantity sold would be _________diamonds. If there were only one supplier of diamonds, the price would be $______ per diamond and the quantity sold would be ______ diamonds. Suppose Russia and South Africa form a cartel. In this case, the price would be $________ per diamond and the total quantity sold would be ________ diamonds. If the countries split the market evenly, South Africa would produce __________ diamonds and earn a profit of…
- Which of the following would be most likely to contribute to the breakdown of a cartel in a natural resource (e.g., bauxite) market? Group of answer choices high prices low price elasticity of demand high compatibility of member interests unequal member ownership of the natural resourceIn prices. market structure, firms sell differentiated products but due t A) a monopolistic competition B) an oligopoly a monopoly D a perfect competition Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.Cartel theory is usually understood as the doctrine of economic cartels. However, since the concept of 'cartel' does not have to be limited to the field of the economy, doctrines on non-economic cartels are conceivable in principle. Explain the cartel theory using an appropriate graph. Indicate the incentive for the oligopoly firms to form a cartel.
