The graph below shows the demand for Cosmic shampoo. ◻ Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $ Output: b. What are the cartel (monopoly) price and output? Price: $ Output: c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1 decimal place. Price: $ Output:

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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The graph below shows the demand for Cosmic shampoo. ◻ Suppose there are no fixed costs and marginal cost is a constant $30. a. What are the perfectly competitive price and output? Price: $ Output: b. What are the cartel (monopoly) price and output? Price: $ Output: c. If there are only four firms in the cartel, what are the price and output of each firm, assuming equal shares? Round your answers to 1 decimal place. Price: $ Output:

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Costs and revenues
30
40
69
60
50
50
20
(500, 25)
10
10
0
200 400 600
800
1000
Quantity per period
D
Transcribed Image Text:Costs and revenues 30 40 69 60 50 50 20 (500, 25) 10 10 0 200 400 600 800 1000 Quantity per period D
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