What is a cartel and how it reads to market failure, and construct a diagram as well

Q: a. What will happen to the equilibrium of the two company if they were to form a cartel and…

A: Below is the two nash equilibrium: First equilibrium, (60, 60)Second equilibrium, (30, 30)

Q: Organization of the Petroleum Exporting Countries (OPEC) is an example of Cartel that can control…

A: In oligopoly, there are a few larger sellers and many buyers. OPEC is an example of oligopoly where…

Q: When OPEC raised the price of oil dramatically in the mid-1970s, experts said it was unlikely that…

A: OPEC: OPEC stands for Organisation of the Petroleum Exporting Countries. It is an intergovernmental…

Q: Why does monopoly need to be regulated?

A: A monopoly is the marketplace with only a single seller of a specfiic good as there is no close…

Q: Explain the contradictory incentives associated with forming and maintaining cartels.

A: A cartel is a situation in which members of an oligopoly form a group in which they work together in…

Q: Why Cooperation in the oligopoly (cartel) market cannot last long, what are the causes?

A: A cartel is characterized collectively of firms that social gather to settle on result and value…

Q: Explain in detail how does a cartel operate.

A: A cartel is formed when a group of producers band together to work together, protect their…

Q: What is the primary reason that cartels fail to work? Becoming a cartel reduces barriers to entry…

A: A group of firms acting in unison in order to produce at monopoly level of output so as to maximize…

Q: how would you figure out what to charge for your good/service that you are selling in a duopoly?

A: Oligopoly is a market structure where there is a small number of firms ut each of the firms involves…

Q: The demand for a product is Q = 100 P. Initially the marginal cost is MC0 = 40 and the price is P0…

A: a. The market demand is given to be Q = 100-P. When the cartel is formed, then there will be a…

Q: Which two kinds of monopolies exist? Which is more economically efficient? Why?

A: Monopoly is a market structure in which there is a single firm and large number of buyers. The…

Q: What’s the difference between oligopoly and monopoly

A: Difference between oligopoly and monopoly are as follows: 1.Oligopoly has few sellers whereas…

Q: Why are monopolies for the most part illegal?

A: Monopoly Market: Monopoly market refers to the market situation where a single firm enjoys the…

Q: What is a cartel? Explain the coordination problem it faces.

A: Under oligopoly, there are few dominant firms in the market. These firms own a large market share.…

Q: how conflicting affecting cartels and like cartels like opec fail to reachto consensus on price and…

A: A cartel is essentially an economic coalition of producers and manufacturers that aims to manipulate…

Q: rtels are the group that is created by the firms in the market to gain control over the prices and…

A: Cartel is when multiple firms conspire to optimize the quantity and thus keep prices in a range band…

Q: a) Draw a graph illustrating the oligopoly market structure that is in long run equilibrium. Market…

A: An oligopoly market refers to the form of the market with a small number of firms who are…

Q: oligopoly and monopoly market?

A: Oligopoly and monopoly are two types of market structures.

Q: Why is the graph of the cartel drawn exactly the same as the monopoly graph?

A: A monopoly, in contrast to a perfectly competitive firm, has the market all to itself and…

Q: Describe the characteristics of monopolistic competition and oligopolies and how cartels emerge in…

A: Monopolistic competition is a form of imperfect competition in which several producers compete…

Q: fail.

A: Cartel - It is a situation when the independent enterprises collude together to charge a monopoly…

Q: Using Cost curves explain how Monopolies make unusual profits?

A: In monopoly, eqm quantity is where the MR(marginal revenue) and MC(marginal cost) cut each other.…

Q: What is a cartel and how it reads to market failure

A: A cartel is an organization of the market producers made in order to dominate the market through the…

Q: If a group of sellers could form a cartel, what quantity and price would they try to set?

A: A cartel in economics refers to a group of producers work together to protect some common interests.…

Q: What is cartel in oligopoly?

A: An oligopoly is a market arrangement in which a small number of enterprises can exert significant…

Q: If the market described in the accompanying diagram is dominated by a cartel, the loss in total…

A: Answer: According to the above figure the equilibrium occurs at point E in the perfectly…

Q: An economy has two producers for a good that has the demand Q = 30 – P. The firms may operate under…

A: Cartel is an agreement among firms producing similar products to cooperate and act as a monopolist.…

Q: a) Draw a graph illustrating the oligopoly market structure that is in long run equilibrium. Market…

A: Market structure is the different set of industries with different properties, based on their degree…

Q: Why are monopolies considered an abuse of power?

A: Pricing power is frequently restricted by rivals and the prospect of customers switching to…

Q: Isolated Island has two wind turbines producing electricity, one owned by Dick and the other owned…

A: P($) Qd TR=P*Q MR=∆TR/∆Q 12 0 0   11 1 11 11 10 2 20 9 9 3 27 7 8 4 32 5 7 5 35 3 6 6…

Q: Suppose Firm A and B have formed a cartel. MCA = 16+4QA and MCB = 6 +4QB. The market demand is Q =…

A: Cartel firms act like monopoly and these firms distribute output in such way that marginal cost of…

Q: Why is collusion or coordination (such as cartels) not prevalent in the United States and other…

A: The collusion or coordination in the market is illegal under the antitrust law in the united states…

Q: “Firms have an incentive to form a cartel,but once it is formed,they have an incentive to…

A: Cartels are formed when two firms decide to collude among themselves. They are part of duopoly…

Q: Explain the circumstances under which cartels may fail. Refer to microeconomics and show a diagram.

A: A cartels could be a assortment of freelance businesses or organizations that conspire so as to…

Q: What are businesses or industries in the Philippines is as examples of monopolistic competition?

A: Monopolistic competition describes a market in which a large number of companies compete for the…

Q: how do monopolies affect societys well being?

A: In case of a Monopoly there is a single seller who controls the entire market. The firm is a Price…

Q: Q 03: How do oligopolies works? Give one example of each? How is the market structure different on…

A: There are four major types of market structures in the economy: perfect competition, monopoly,…

Q: Suppose there are two firms in the market, Firm A and Firm B. The total market demand is given by…

A: Cartel is an agreement between firms to maximise joint profit.

Q: Discuss a cartel, how it works and problems it faces.

A: A cartel refers to a situation when the group of producers works together to protect their…

Q: Suppose Clancy and Eileen form a cartel and behave as a monopolist. The profit-maximizing. price is…

A: Cartels are a type of oligopoly since they include various firms working in a conspiracy to limit…

Q: I am trying to sell widgets and have determined the supply and demand functions to be: Supply price…

A: Consumer Surplus refers to the unique buyer surplus is the net income to a certain buyer from the…

Q: Which benefit is shared by both monopolies and oligopolies?

A: A monopoly is a market where there is only one seller with a large number of buyers and there is no…

Q: gallons. As part of their cartel agreement, Tim and Alyssa agree to split production equally.…

A: Tim and Alyssa established a cartel. They will create the amount that corresponds to the maximum…