Say you are part of the government and found that there is a presence of a cartel; explain the actions should the government take or even the firms present in the industry to break the formation of the cartel?
Q: The table describes an economy's labor market. What are the equilibrium quantity of labor employed…
A: Equilibrium is where demand equals supply. Or we can say equilibrium is where demand curve…
Q: Discuss economic and policy factors that explain why racial discrimination is more likely in law…
A: Introduction A labor market is a place where workers and employees interact with each other. In…
Q: The elasticity of demand for a firm’s product is -2.5 and its advertising elasticity of demand is…
A: Profit maximization is the act of accomplishing the highest revenue or profit. The level of sales…
Q: Which of the following is are the three jobs of money? (Check all that apply) A. Medium of…
A: According to definitions used in economics, money is a commodity that acts as a store of value and a…
Q: The Fed Group of answer choices issues deposits to the public. lends money to foreign governments.…
A: The FED is the primary organisation in charge of managing the nation's monetary policy through…
Q: Suppose there is no population or technological growth. Define k as the capital-to-labor ratio. If…
A: The Solow growth model gives steady-state points at which all key variables of the model are growing…
Q: Company ABC is considering investing in a project whose initial cost is $185000. It saves $42000 in…
A: Given Initial cost (FC) -$185,000 Salvage value (SV) $13600 Useful life 7 years…
Q: Reilly's Law/trade area capturing The city Riverside wants to know how many customers it has…
A: Trade refers to the exchange of goods and services between different nations. When a nation is…
Q: Match the product to the category in which it belongs. WORD BANK Club good, Common reosurce, private…
A: Goods can generally be classified into four types based on excludability and rivalry in consumption.…
Q: Suppose a competitive industry has 1,000 identical firms. After years of firms entering and exiting…
A: In perfect competition , The profit is maximized where P = MC. In long run , Equilibrium is where…
Q: What does the contract curve in an Edgeworth production box signify? Why do competitive markets…
A: The Edgeworth box takes into account a two-person, two-good "exchange economy." An Edgeworth box,…
Q: Why would the types of policy choices we normally might say are poor stimulative policies (such as…
A: Economic stimulus refers to the actions taken by the government to stimulate the economy of the…
Q: a. Suppose that 2019 is the base year. Calculate the price index for 2018, 2019 and 2020. b.…
A: The price index is one of the measures to determine the changes in the prices of goods and services.…
Q: Calculate the benefit/cost ratio at i-5% for a highway project. The first cost is $150,000 and O&M…
A: B-C ratio is the benefit to cost ratio. B-C ratio is calculated by dividing the net cost from net…
Q: Two firms constitute the entire doghouse industry. One has a long run cost curve of 3 + (4y2/3) and…
A: Supply curve of a firm is determined by the range at which price is equal or greater than the…
Q: 164 Indians CHAPTER 4 REGRESSION MODELS 9 (a) Develop a regression model to predict the price of…
A: The regression model tells about the relationship between the dependent variable(Y) and one or more…
Q: In the short run, at a market price of $20 per wind chime, this firm will choose to produce On the…
A: In perfect competition , Firm will produce where P = MC P is the market price MC is the marginal…
Q: 4-30 In 2012, the total payroll for the New York Yankees was almost $200 million, while the total…
A: Payroll is the sum of all the benefits that a company is required to deliver to its workers on a…
Q: Design Alternatives A B $100M $160M $220M $20M $40M $ 60M $8M $18M $25M 0 Initial Investment Annual…
A: BC ratio i.e. Benefit cost ratio is the ratio between annual benefits received for every unit of the…
Q: a. If the firm wishes to maximize its total revenue, at what price should it sell its pots? What is…
A: Elasticity refers to an economic concept used to calculate the change in the aggregate quantity…
Q: The ratio of all levels of government spending to GDP in the United States is about percent. O 40 50…
A: Government expenditure as a percentage of gross domestic products (GDP) is an approach to assess a…
Q: Which of the following are the four influences on the demand for money? (Check all that apply)…
A: Demand for money means that money is demanded as physical cash, current account and savings account…
Q: "deposits at other banks (shown as asset of commercial bank) is usually deposits from small banks at…
A: A financial institution which provides loans to the public and accepts deposits from them for…
Q: Use the following payoff matrix for a one-shot game to answer the accompanying questions.…
A: Player 2 Strategy X Y Player 1 A 30,30 16,-50 B -50,16 50,50
Q: Explain what happens to consumption, investment, and the interest rate when the government increases…
A: Tax amount is the is the amount the is charged by the government inthe firm of tax. Consumption and…
Q: You have data on the average productivity of workers for firms across Australia. You also observe…
A: A sequence (or a vector) of random variables will be considered to be homoscedastic in statistics…
Q: Which of the following conditions is most likely essential for implementing a successful market-…
A: Pricing strategy is important in every business. Firms set pricing in such a way that the price…
Q: 3. Suppose a firm's total cost curve is TC= 10Q² + 6Q+ 60, and MC=20Q + 6. 1. Find expressions for…
A: A firm faces two types of costs which are fixed and variable costs. Fixed cost is not dependent on…
Q: Currency held outside banks + demand deposits + travelers checks + other checkable deposits = Group…
A: The money supply alludes to how much cash or currency coursing in an economy. Various proportions of…
Q: Y (t) = (K (t))ª (L(t))¹-α L(t) L(t) = K(t) L(t) ced output, K (t) is the stock of capital, L(t) is…
A: The Solow growth model is an alternative to the Harrod-Domar growth model. The Solow growth model…
Q: 3. Angstrom Technologies intends for the company to use the newest and finest equipment in its labs.…
A: Initial Cost of up-gradation = 43000 Operating cost in year 1 = 22000 Operating cost in year 2 =…
Q: _________________ are a unit of measurement in which the relative value of goods and services can be…
A: Money is anything that is used for payment by people. It has three primary functions: Medium of…
Q: What is a monopsony? What distinguishes a monopsony from a competitive employer of inputs
A: In a market structure, buyers and sellers get together to negotiate the terms of the commodities and…
Q: 6. Consider below the Marginal Cost of an existing machine and the Equivalent Uniform Annual Cost…
A: Replacement analysis is used to determine the replacement time for an old machine. For the…
Q: In this market, the equilibrium price is Price (Dollars per box) 35 For each of the prices listed in…
A: Equilibrium is where Demand curve intersects supply curve. When the quantity demanded is greater…
Q: 4. Profit maximization and loss minimization Lagatt Green is a monopoly beer producer and…
A: Monopoly is viewed as one of the market structures of the economy. At the point when there is a…
Q: 1. Consider a two player, simultaneous move game. The strategies available to each player and…
A: Pure strategy Nash Equilibrium: Nash equilibrium with 2 players is the strategy profile where both…
Q: The graph shows an economy's aggregate supply and potential GDP. On the graph, draw an aggregate…
A: Full Employment equilibrium refers to a point where full resource utilization is achieved. It is a…
Q: Bella bakes delicious cookies. Her total fixed cost is $48 a day, and her average variable cost is…
A: Total cost is the addition of Total fixed cost and Total variable cost. on the other Average total…
Q: How did the ECONOMIC factor of the PESTELE model lead Trump when assessing TikTok as a threat to…
A: PESTEL stands for political, economic, social, technological, ethical, legal, and environmental…
Q: ). Choose a wrong statement about the policies designed to reduce the catch. O Transfer costs…
A: Introduction An economic policy is a course of action that is intended to influence or control the…
Q: An investment has the following cash flow series where interest is 7%: End of Year 0 1 2 3 4 5 6 7 8…
A: Present value is the value of investment in today's dollar Future value is the value of investment…
Q: Consider that there are two goods, good X and good Y. a) Give the definition of "indifference curve"…
A: In economics, the term "consumer preference" refers to the decisions that consumers make to maximise…
Q: Dena won $200 in the lottery. She deposits her $200 winnings into a money market fund so that she…
A: The money supply is the entire amount of money in circulation (cash, coins, and bank account…
Q: Question3 Imagine that you own a company that is a price taker with the production function:…
A: The marginal product of labor (MPL) measures the change in output due to a change in labor, keeping…
Q: only typed answer Consider the following information: Q = 22 L + 57 K PL=52, PK=3, P=28 and C=4763…
A: The objective of a firm is to maximization of profits This implies selling an optimized quantity of…
Q: You purchased a winning ticket for a $5 million lottery which pays $500,000 immediately and the rest…
A: Here in this question, To decide whether we have to go with the deal or not. We have to find the…
Q: What's the differrence between small-denomination time deposits and large-denomination time…
A: Time deposits are deposits that are deposited on the basis of a certain time period like 5 years, 10…
Q: 1. Explain three factors that have constrained the growth of the agriculture sector in recent times.…
A: Agricultural economics is the study of the allocation, distribution, and usage of agricultural…
Q: . Customer information that may be sold by banks include all of the following, EXCEPT a. loan…
A: Banks holds information with respect to borrower loan history, its investments and bank balance it…
Step by step
Solved in 2 steps
- Would you expect the kinked demand curve to be more extreme (like a right angle) or less extreme (like a normal demand curve) if each film in the cartel produces a near-identical product Like OPEC and petroleum? What if each film produces a somewhat different product? Explain your reasoning.Is it true that the four-firm concentration ratio puts more emphasis on one or two very large films, while the Herfindahl-Hirshmau Index puts more emphasis on all the films in the entire market? Explain briefly.For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. films compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context?
- Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?Intellectual property laws are intended to promote innovation, but some economists, such as Milton Friedman, have argued that such laws are not desirable. In the United States, there is no intellectual property protection for food recipes or for fashion designs. Considering the state of these two industries, and hearing in mind the discussion of the inefficiency of monopolies, can you think of any reasons why intellectual property laws might hinder innovation in some cases?Consider the curve in the figure below, 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. Suppose the firms collude to form a cartel. What price will the cartel charge? What quantity will the cartel supply? How much profit will the cartel earn? Suppose now that the cane] 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? Compare the equilibrium price, quantity, and profit for the cartel and cutthroat competition outcomes.
- how conflicting affecting cartels and like cartels like opec fail to reachto consensus on price and quantity?The 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. $804. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding. They each have cost C(Qi) = 60Qi. If they cooperate and behave as a monopoly, then they have a marginal revenue curve, MRm = 420 – 2Q, and a marginal cost curve, MCm = 60. If they are in a cartel, then the firms will split the monopoly production and profits. If they compete, then they face MRi = 420 – 2Qi – Q-I and MCi = 60. a. If the firms stick to their agreement (cooperate), how much per-period profit do they each make? b. If they are not able to maintain their agreement (compete), what is their per-period profit? c. If one firm cheats on their agreement (deviate), how much does each firm make? Be sure to specify both the profit for the cheater and the firm cheated-on. d. Suppose the firms assume that their interaction will last forever (r = 1) and they share the common discount value R. What is the lowest value of R such that both firms are willing to continue with the cartel…
- a. Explain what you know about collusion and cartels, including: definition, formation of motives, types and differences between these types, and so on. b. Why is this behavior often encountered in imperfectly competitive market structures such as oligopolies? c. What obstacles/obstacles do collusion and cartels often face? d. Name and explain at least 3 factors that can facilitate the occurrence of collusion and cartel!4. Imagine a market with demand P = 420 – Q in each period. Two firms are thinking about colluding. They each have cost C(Qi) = 60Qi. If they cooperate and behave as a monopoly, then they have a marginal revenue curve, MRm = 420 – 2Q, and a marginal cost curve, MCm = 60. If they are in a cartel, then the firms will split the monopoly production and profits. If they compete, then they face MRi = 420 – 2Qi – Q-I and MCi = 60. d)Suppose the firms assume that their interaction will last forever (r = 1) and they share the common discount value R. What is the lowest value of R such that both firms are willing to continue with the cartel agreement described above?just answer the subpart d a. Explain what you know about collusion and cartels, including: definition, formation of motives, types and differences between these types, and so on. b. Why is this behavior often encountered in imperfectly competitive market structures such as oligopolies? c. What obstacles/obstacles do collusion and cartels often face? d. Name and explain at least 3 factors that can facilitate the occurrence of collusion and cartel!