Firms A and B are identical, produce identical products, and are the only firms in a market. Firm A's output is higher than Firm B's. This means that Firm B is the Select one: A. Stackelberg leader. B. Cournot leader. C. Cartel leader. D. Stackelberg follower.
Q: 17. Suppose the domestic demand and supply for T-shirt are as follows: Demand: P = 100-Q Supply: P =…
A: A deadweight loss is an expense for society made by market failure, which happens when organic…
Q: Explain the various trends in the Trade and Development Report (2020)
A: Economic development projects include infrastructure improvements, education, public safety, and a…
Q: Which would be an implicit cost for a firm? The cost of: A. Property insurance B. Property tax C.…
A: Implicit costs: The implicit cost refers to the opportunity cost of producing a particular commodity…
Q: What are the determinants of price elasticity of demand? Identify at least three examples. Explain…
A: Price elasticity of demand is the degree to which the quantity demanded of a good or service changes…
Q: How does the impact of fixed costs change production decisions in the short run and in the long run?…
A: In economics, fixed cost refers to expenses that remain constant regardless of changes in production…
Q: Consider the following exports and imports for a country: Exports Imports Refined Petroleum…
A: Trade refers to the exchange of goods, services, or resources between two or more parties, typically…
Q: QUESTION 3 Many changes are affecting the market for oil. Predict how each of the following events…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: The cross elasticity of demand between cake mix and frosting is likely to be:
A: Cross elasticity of demand refers to the relationship that exists between the quantity demanded of a…
Q: Answer the following questions in essay form: 1. What are the different theories in economic…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 3. Profit maximization using total cost and total revenue curves Suppose Amari operates a handicraft…
A: Marginal revenue refers to the additional revenue gained by the producer by selling one additional…
Q: Question 4 6. A prisoner's dilemma problem can be solved by a. the parties are kept from…
A: The Prisoner's Dilemma is a classic problem in game theory that models a situation where two…
Q: A medical researcher is trying to cure a disease. For each unit of effort she puts into her work,…
A: Given that; A medical researcher is trying to cure a disease. For each unit of effort she puts into…
Q: Suppose a country a real GDP of $159. What will the size of the GDP be after 14 years if the economy…
A: Gross domestic product (GDP) growth is the rise in a nation's GDP over a predetermined amount of…
Q: 80 72 3 56 PRICE (Dollars per pound) 13 48 40 z 16 0 Q 0 Demand 0 20 D True > 4 False > ✓ 0 Ο Δ D 4…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: Write out the standard form of a budget constraint (meaning only with variables, no numbers). Then,…
A: The budget constraints represent all possible combinations of consumer goods that a consumer can buy…
Q: As the article notes, Atkinson argued that "[inequality] cannot, in general, be measured without…
A: One of the most scholars is Tony Atkinson. His entire life was devoted to examining and…
Q: A bridge design firm is performing an economic analysis of two mutually exclusive designs for a…
A: The equivalent uniform annual cost (EUAC) of any expense is the amount expected to be paid in equal…
Q: The private marginal benefit of a product's consumption is PMB = 200 - 2Q, and the private marginal…
A: A negative externality occurs if the consumption if production of a product causes a cost to a third…
Q: A monopolist faces demand Q = 20 - 2p and has cost C(q)=5. Total output will equal, QM?
A: The optimum output that would be produced by the monopolist is at the point where the profits are…
Q: Use a properly labeled graph to illustrate the relationships between full-employment (or potential…
A: The association between output Y at full employment (also known as potential or natural rate of…
Q: Briefly discuss characteristics of the Swiss health care system.
A: Introduction A health system, often referred to as a health care system, is an organisation of…
Q: 22. (True or False) Suppose the own price elasticity of demand for good X good X increases by 20…
A: Elasticity of demand measures the responsiveness of quantity demanded with respect to change in…
Q: 29. Total fixed costs of production in the short run: A. Cannot be reduced by producing less output…
A: The cost of production refers to the expenses incurred in the process of creating a good or service.…
Q: a homeowner sells a kitchen table and chairs that she no longer wants to use and does not report the…
A: Gross Domestic Product, or GDP, is a metric used to describe the total amount of products and…
Q: the graph input tool to help you answer the following questions. You will not be graded on any…
A: The quantity of labour demanded is computed by locating the amount corresponding to the wage rate on…
Q: What is the approximate value of Annie’s brand/store compared to Sam’s for an otherwise equal apple…
A: Conjoint analysis is a statistical technique used to understand how customers make choices between…
Q: QUESTION 4 What is the effect of a binding price ceiling on the quantity demanded of a product?…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: You are given the following information for an economy. Real GDP $700,000 $750,000 2018 2019…
A: The real GDP refers to the final output, i.e., finished commodities, of an economy produced in a…
Q: an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a…
A: Given that; Harold purchases the mortgage of $30,000 and buys the ticket for $290 for 50 years. The…
Q: During the course of a year, the labor force consists of the same 1,207 people. Of these, 59 lack…
A: Natural rate of unemployment: The active participants of the labor force who do not have a job or…
Q: 2. Assume the equilibrium quantity in a competitive market is 6 and the equilibrium price is 16.0…
A: Since you have posted multiple questions, we will provide the solution only to the first question as…
Q: The table below shows the index numbers for the cost of a basket of goods and services in each…
A: Consumer price index shows the cost of a market basket of goods/services consumed by a consumer in a…
Q: Click on the axis tick mark that corresponds to the average revenue for the open access allocation…
A: Consider community-owned forests and maritime fisheries as examples of (sustainable) natural…
Q: Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $490…
A: Externality: Externality refers to the situation of a person engaging in activities that may…
Q: COUNTRY A COUNTRY B 7 2 TABLES 4 DESK 1 b. Using the information provided in the table below, answer…
A: "The production possibility frontier curve shows that the possible combination of two goods produced…
Q: Jones Corporation borrowed P80,000 from Brown Corporation on Jan 1,1993 and P12,000 on Jan 1, 1995.…
A: The cost of borrowing money is interest. When a lender makes a loan, they earn from the interest…
Q: n an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg…
A: The Stackelberg model is an initiative model that permits the firm predominant to set its cost…
Q: A monopolistic competitor has the following information about cost and demand. Quantity Price ($)…
A: Since you have posted multiple questions, we will provide the solution to only the first question as…
Q: Suppose we allocate a fixed budget for tuberculosis screening between two alternatives: screening…
A: Marginal benefit - marginal cost (MB-MC) analysis is a technique used in economics to evaluate the…
Q: QUESTION 5 Referring to the oil market graphs, In a free market society with no government…
A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…
Q: Exercise 2. Describe the difference between allocative efficiency and productive efficiency in the…
A: Efficiency is the ability to use resources in a way that maximizes output while minimizing input. In…
Q: State whether you agree with the following statement and why: “It doesn’t make sense to give poor…
A: In economics, the definition of "poor people" typically refers to individuals or households with low…
Q: Quantity of good A Price of good A Quantity of good B Price of good B a. In 2010, nominal GDP-S Year…
A: GDP is the gross domestic product. Real GDP does not include the effect of inflation. Real GDP is…
Q: Answer the following T/F questions a. b. C. d. e. T or F, an oligopolist, like the monopolist, earns…
A: Economists have classified the market structures into four categories for easy understanding of the…
Q: 1. The language of price controls Suppose that, in a competitive market without government…
A: Price control refers to the technique of establishing a lower limit or upper limit of the sellng…
Q: Health Services is working with chief physicians at some of the 230 clinics nationwide to select the…
A: Present worth is the theory that explains an amount of money today is worth greater than that same…
Q: Suppose Emma consumes only 2 good X1 and X2 and her utility function is given be u=5x1x2 suppose at…
A: Utility function shows the relationship between utility and commodities that are consumed. The…
Q: A. The relaxation of immigration law that caus an influx of immigrants into the U.S. B.The age at…
A:
Q: Calculate the PPP-adjusted GDP for each of the four countries, using the information found in the…
A: PPP stands for purchasing power parity. PPP-adjusted GDP takes into account the relative purchasing…
Q: Suppose u(x) = min{ax₁ + ßx2, 7x₁+x2}, for some parameters a, ß, y,d > 0. Assume that >.
A: Given: Utility function: u(x)=Max {αx1,βx2,γx1,δx2} Also, α/β>γ/δ
Step by step
Solved in 3 steps
- Each member of a cartel a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit. b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit. c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit. d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit. e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.Breakdown of a cartel agreement Consider a town in which only two residents, Sean and Yvette, own wells that produce water safe for drinking. Sean and Yvette can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 5.40 0 0 4.95 40 $198.00 4.50 80 $360.00 4.05 120 $486.00 3.60 160 $576.00 3.15 200 $630.00 2.70 240 $648.00 2.25 280 $630.00 1.80 320 $576.00 1.35 360 $486.00 0.90 400 $360.00 0.45 440 $198.00 0 480 0 Suppose Sean and Yvette form a cartel and behave as a monopolist. The profit-maximizing price is $ __________ per gallon, and the total output is __________ gallons. As part of their cartel agreement, Sean and Yvette agree to split production equally. Therefore, Sean's profit is $ __________ , and Yvette's profit is __________ .…Coke and Pepsi dominate the cola market. Suppose that the marginal cost of making cola is $2. Assume also that the demand for cola is given by the following table: Price $8 7 6 5 4 3 2 1 Quantity 5 cans 6 7 8 9 10 11 12 Suppose Coke and Pepsi both supply cola. They form a cartel and agree to cooperate on how much soda to produce. In this cartel case, how many bottles of cola would be sold? Type your answer...
- Which of the following would most likely create the setting for an Oligopoly ? A. The government grants T'Challa and Nakia a patent for their respective vibranium-based electric car batteries. B. Market Demand is two or more times less than the quantity needed to produce at the minimum of the Average Cost Curve. C. Market Demand is two or more times greater than the quantity needed to produce at the minimum of the Marginal Cost Curve. D. Insumountable technological difficulty associated with producing similar products serves as an effective Barrier to Entry. E. All of the AboveThe table shows the demand schedule for a particular product. Quantity Price 0 100 300 90 600 80 900 70 1200 60 1500 50 1800 40 2100 30 2400 20 2700 10 3000 0 Suppose the market for this product is served by two firms who have formed a cartel and are colluding to set the price and quantity in this market. If the marginal cost to produce this product is constant at $40 per unit, then what price will the cartel set in this market? a. $40 b. $50 c. $60 d. $70 e. $80Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost. Quantity Demanded (Units) 0 5 10 15 20 25 Price (Dollars per unit) 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 30 35 40 45 50 55 60 65 70 Total Revenue (Dollars) 0 65 120 165 200 225 240 245 240 225 200 165 120 65 0 Total Cost (Dollars) 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 Refer to the table above and explain: A). If ABC and MNO operate to jointly maximize profits, then what is the price? $9 B). If ABC and MNO operate to jointly maximize profits, then what quantity is sold? 25 I Profit (Dollars) 0 45 80 105 120 125 120 105 80 45 0 -55 -120 -195 -280 C). If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? $62.5 D). ABC and MNO agree to maximize joint profits. However, while ABC produces the agreed-upon amount,…
- 20. Using two carefully drawn and labeled diagrams, analyze an input cartel. That is, on the left side of the page, draw a diagram for one of the firms, and on the right side, draw a diagram for the labor market. Indicate the equilibrium wage and employment for the market if the labor market is competitive, (WC , LC), and the corresponding outcome for a firm, (WC, lC). Then, explain how the cartel adjusts the wage and employment.What is the primary difference between oligopolistic "coopetition" and cartel behavior? Group of answer choices A. Oligopolistic firms work together to set prices and cartels do not B. One firm has most of the power in oligopolistic coopetition, while cartels share power C. One firm has most of the power in a cartel, while oligopolistic firms share power D. Cartels work together to set prices and oligopolistic firms do notPls reply urgent. An economy has two producers for a good that has the demand Q = 30 – P. The firms may operate under duopoly or as a cartel with market price of Pp and Pc respectively. Assume that both firms do not incur any variable cost. Which of the following is (are) correct? Select one or more: a. PD = Pc b. 3PD = 4Pc c. 2P) = 3PC d. 3PD = 2Pc
- Bill's Salmon Supplier: Bill's Salmon Supplier sells fresh salmon to local seafood restaurants. Every morning Bill sails out to sea to catch salmon, and each afternoon he returns to sell his catch to local restaurants. There are hundreds of other fishers catching and selling salmon. Because the salmon Bill catches is just like the salmon caught by the other fishers, he can't raise his price. Choose the type of market structure: perfect competition, oligopoly, monopolistic competition, monopoly Type of Market Structure: Reason:Economics Remove flag Anna, Bill, and Charles are competitors in a local market, and each is trying to decide whether it is worthwhile to advertise, If all of them advertise, each will earn a profit of $5000. If none of them advertise, each will earn a profit of $8000, If only one of them advertises, the one who advertises will earn a profit of $10,000 and the other two will each earn $2000. If two of them advertise, those two will each earn a profit of $6000 and the other one will earn $1000. If all three follow their dominant strategy, what will Anna do, and how much will she earn? Select one: a. Anna will advertise and earn $5000. b. Anna will advertise and earn $6000. C. Anna will not advertise and will earn $8000, d. Anna will advertise and earn $10,000.Write down a homogeneous good cartel model of quantity choice with two firms. State andexplain the key assumptions of the model. Using the model, answer:(a) Analyse and explain how the cartel would decide the optimal quantity for each firm.
