. QUESTION 9Twe firms with the same (constant) marginai costs are engaging in Bertrand competition. One of the companies exits the industry. AS a a consequence, the price for the other firm increases by 50. What is the elasticity ofdemand in this market?2.5O2QUESTION 10Consider an industry with 9 identical ferme seling a homogenous product. The fems set prices with an intiite horaon. Al frms have a discount factor af 8.Which of the folowing statements is true?OPems can sustain collusion if s greater or equal than 9.Ferms can sustain collusion if 6 is greater or equal than 10.Firms can sustain collusion if 6 is greater or equal than 1/2.None of the above.

Question 10 The firm will call you with homogeneous products if the discount factor is greater than…

wo firms with the same (constant) marginai costs are engaging in Bertrand competition. One of the companies exits the industry. As a a consequence, the price for the other firm increases by 5o. What is the elasticity of demand in this market? 25 02 QUESTION 10 Consider an industry with 9 identical ferme seling a homogenous product. The ferms set prices with an infinite hanzon Al firms have a discount factor af 8. which of the following statements is true? OPems can sustain collusion if sa greater or equal than B. Firms can sustain collusion if 6is greater or equal than 19. Firms can sustain collusion if 6 is greater or equal than 12.

wo firms with the same (constant) marginai costs are engaging in Bertrand competition. One of the companies exits the industry. As a a consequence, the price for the other firm increases by 5o. What is the elasticity of demand in this market? 25 02 QUESTION 10 Consider an industry with 9 identical ferme seling a homogenous product. The ferms set prices with an infinite hanzon Al firms have a discount factor af 8. which of the following statements is true? OPems can sustain collusion if sa greater or equal than B. Firms can sustain collusion if 6is greater or equal than 19. Firms can sustain collusion if 6 is greater or equal than 12.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 3P

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