Suppose two firms compete in quantities (Cournot) in a market in which demand is described by: P=260-2Q. each firm incurs no fixed cost but has a marginal cost of 20. Now imagine they collude to produce the monopoly output.   Suppose that after the cartel is established, firm 1 decides to cheat on the collusion, assuming the other firm will continue to produce its half of the monopoly output.   What will be firm 1's profit if firm 2 continues producing the monopoly outcome? a. 4500 b. 5200 c.4200 d. 4050 Should firm 2 respond and increas their quantity? Yes or No

Q: Discuss the relevant economic approaches/theories that explain the issues raised in the article. You…

A: The objective of the question is to apply relevant microeconomic theories to explain the issues…

Q: Frank is lending $1,000 to Sarah for two years. Frank and Sarah agree that Frank should earn a real…

A: a. The nominal rate of interest charged should be 14%.b. Frank should charge Sarah 3% more than the…

Q: f. The portion of the graph in which a decrease in price would not cause a change in total revenue…

A: “Since you have posted a question with multiple sub-parts, we will provide the solution only to the…

Q: Can the Production Possibilities Curve shift left? If not, explain why. If it can, explain what…

A: The issue is to comprehend if and how the Production Possibilities Curve (PPC) can shift to the left…

Q: An economy has production function Y = K1/2L1/2, a savings rate of 60 percent. There is no…

A: The problem at hand deals with the dynamics of output in an economy characterized by a specific…

Q: Q1: Firms A and B are two firms supplying products in two separate differentiated goods markets.…

A: Costs refer to the expenses that are incurred in the process of production of goods or services.…

Q: A monopolist faces a demand curve given by P=75-(Q²/3), and a total cost curve given by TC=275+5Q² a…

A: In a monopoly, the profit maximization condition is based on comparing marginal revenue (MR) and…

Q: In the following table, complete the third column by determining the quantity sold in each country…

A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…

Q: Which of the following production functions does not display constant returns to scale? a. Q =…

A: The return to scale is a concept that describes the relationship between the scale of production or…

Q: How much must you deposit each year into your retirement account starting now and continuing through…

A: A deposit starting from current period goes through 10 years. The deposit takes place if $75000…

Q: Using your answer to (b), determine how the equilibrium price and quantity of pork changes for a…

A: Equilibrium Price is the price at which the quantity of goods producers are willng to produce and…

Q: You are asked to evaluate ergonomic interventions for your company based on the following…

A: The owning, operating and maintaining an asset annual cost  is referred to as equivalent annual…

Q: 3. A firm's total cost is TC = Q³ - 60Q² +910Q + 150, and its marginal cost is 3Q² - 1200 + 910 a.…

A: Total Cost = Q³ - 60Q² +910Q + 150,Marginal Cost = 3Q² - 1200 + 910

Q: U = M G n + log(G) - n k

A: Utility functions play a critical role in microeconomics by quantifying consumer preferences and…

Q: Compare and contrast private and public goods. Give an example for each kind of good.

A: Understanding the distinction between private and public goods is vital for getting a handle on how…

Q: Use the calculator to help you answer the following questions. You will not be graded on any changes…

A: A firm’s willingness to pay for each unit of labor it wishes to hire is shown by the labor demand…

Q: Tim put $275 in the bank one year ago and forgot about it. Today, the bank sent Tim a statement…

A: The objective of the question is to find out the interest rate that Tim earned on his bank deposit…

Q: In the neoclassical view of the economy, expansionary fiscal policy cannot work to raise equilibrium…

A: Expansionary fiscal policy refers to government measures aimed at increasing aggregate demand (AD)…

Q: Look at the graph below. Labor demand falls from D0 to D1 due to an economic recession. What is the…

A: This can be defined as a concept that shows the total demand for the products and services in a…

Q: Give correct typing answer

A: Graph (a)  best show an increase in real GDP, everything else remaining the sameExplanation:Approach…

Q: 4 Mathematical Malthusian Model This question is about determining if the Malthusian trap still…

A: Here due to multible question, only 1st question is answered.So, here we are going to analyse the…

Q: Question IV (External economies of scale, Suppose that wine industry has very strong external…

A: France's average production cost function Korea's average production cost function  Word demand for…

Q: 6. Producer surplus and price changes The following graph plots a supply curve (orange line) for a…

A: Producer surplus represents the additional revenue that producers receive above and beyond their…

Q: Quantity of pumpkin 0 1 2 3 O a. 1 b. 0 Given the marginal cost of each pumpkin, what will be the…

A: In order to answer this question, we must examine a firm's production choices in order to determine…

Q: Refer to the accompanying payoff matrix. Player 1 Low Q High Q Player 2 Low Q $50,$5 $40,$2 High Q…

A: It is a mathematical representation of all the possible outcomes of a strategic decision-making…

Q: Which of the following best approximates a pure monopoly? Multiple Choice a Starbucks in Denver the…

A: Pure monopoly is the market for a single seller having full control over the supply of goods and…

Q: A firm has a marginal emissions benefit of 100-0.5*E in each of 2 years, where E measures emissions…

A: The marginal emission refers to the extra quantity of pollution or greenhouse gases launched into…

Q: Echo) Use Figure: The Market for Amazon Echo. The figure shows the pre-tax and post- tax positions…

A: The imposition of the taxes creates a welfare loss for the sellers and buyers. The elasticity of…

Q: 1. Costs and profit Van lives in Chicago and runs a business that sells boats. In an average year,…

A: Ans. ) Below are the answers to the questions...Explanation:Ans. ) Given the question " Van lives in…

Q: Price of Steel (Dollars per ton) 100 BO 70 60 50 40 Demand 0 100 X + 200 300 400 500 700 True…

A: The objective of the question is to determine whether the statement 'With the export subsidy, this…

Q: Danny "Dollar" dela Cruz is a neighborhood's 9-year-old entrepreneur. His most recent venture is…

A: Elasticity of demand is a concept in economics that measures the responsiveness of quantity demanded…

Q: Price 20 15 10 3 2 0 4 5 10 16 21 Supply Demand Quantity The graph above shows the market for Good…

A: Deadweight loss is the social cost that occurs due to inefficient use of resources. Government…

Q: The utility function and the prices are the following: U=51x1 + 23 x2 P1-5, P2-20 and 1=3157 What is…

A: The utility function is given as The price of first good is 5The price of second good is 20The…

Q: a. Calculate the output and price of paper if it is produced under competitive conditions and no…

A: Given;

Q: Consider worker 1 with non-labour income Y facing a wage offer w and a utility function defined…

A: The Slutsky equation shows that the change in demand for a good or service due to a change in its…

Q: Explain why Roosevelt's first inaugural address was such a big success. Use specific language from…

A: Economic significance comes from Franklin D. Roosevelt's revolutionary initiatives during the Great…

Q: You like to eat apples and carrots. The graph shows your budget for both of these items at Harris…

A: Here we have find the optimal Consumption Point given the graph and tableOptimal Point: The optimal…

Q: 4.28      A new toll bridge is to be constructed over the Green River at a cost of $120M. The bridge…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: What is the value of the deadweight loss created by a perfectly competitive industry? Assume there…

A: The objective of the question is to determine the value of the deadweight loss in a perfectly…

Q: QUESTION 16 What areas of the diagram above represent the surplus transferred from consumers to…

A: Area BExplanation:Approach to solving the question:Area B: This region represents the producer…

Q: The city of Pueblo, CO recently passed a bill to subsidize homebuyers by assisting with their…

A: Here we have see the impact of Subsidy.Subsidy: The subsidy is a financial aid extended to an…

Q: During the COVID-19 pandemic, alcohol consumption increased dramatically. In response, the…

A: The objective of the question is to understand the impact of a tax on a good with inelastic demand…

Q: gure 6-13 16 PRICE 12 se 40 Select one: O a. $9.00 O b. $12.00 O C. $10.50 O d. $8.00 80 QUANTITY…

A: Taxes are the compulsory charges faced by an individual in purchasing or selling a product. The…

Q: a. What is the new equilibrium level of real output? 400 billion b. How large is the real GDP gap?…

A: Macroeconomics examines the working, composition, and dynamics of an economy. AD/AS model is used…

Q: Deadweight loss:       A)  is the lost surplus from efficient trades that do…

A: The objective of the question is to identify the correct definition of 'deadweight loss' in the…

Q: For the net cash flow (NCF) shown below, find the EROR by the Modified ROR Approach (MIRR) method if…

A:

Q: Consider the following table of own price elasticity information for six different markets. Market 1…

A: Elasticity is a measure of how responsive the quantity demanded or supplied of a good is to a change…

Q: After the excise tax is imposed, what is the new equilibrium quantity of sofas?   d. What is the…

A: Equilibrium quantity may be defined as the quantity in the economy where the demand of the commodity…

Q: 1. Review and discuss the collapse of the Futures Oil Market, which fell into the negative realm in…

A: In Commodity Markets and Pricing, the dynamics of commodity markets are explored, along with the…

Q: In accordance with the 1990 Clean Air Act, the state imposes a pollution limit on the market for…

A: Marginal social cost  basically refers to the total cost that is borne by society as a whole in the…