The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $4,800 of fixed costs per month. There are no marginal costs. Price ($) 40 35 30 25 20 15 10 Quantity TŘ ($) MR ($ - 200 400 600 800 1,000 1,200 1,400 1,600 7,000 12,000 15,000 16,000 15,000 12,000 7,000 35 25 15 -5 -15 -25 -35 5 Instructions: Enter your answers as a whole number. a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is $ b. Suppose duopolist A decides to increase production by 200 units. Duopolist A will now produce units and charge a price of $ Duopolist B will now produce units and charge a price of $ The monthly profit for duopolist A is $ The monthly profit for duopolist B is $

The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $4,800 of fixed costs per month. There are no marginal costs. Price ($) 40 35 30 25 20 15 10 Quantity TŘ ($) MR ($ - 200 400 600 800 1,000 1,200 1,400 1,600 7,000 12,000 15,000 16,000 15,000 12,000 7,000 35 25 15 -5 -15 -25 -35 5 Instructions: Enter your answers as a whole number. a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is $ b. Suppose duopolist A decides to increase production by 200 units. Duopolist A will now produce units and charge a price of $ Duopolist B will now produce units and charge a price of $ The monthly profit for duopolist A is $ The monthly profit for duopolist B is $

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 1PA

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