5 Smaltown has 140 residents and two mobte phone providers Vertzon and AT&TEach tim's costs FO S0, MC $10 Assume the two fiems collude and shale the profs equaly. Asume Version cheats by signing p 10 more cuslomers. Assume ATST responts byIncreasing it outpt to 40. What is each firms protes?Q TRTCProfit45504060357030802590201001511010120130140AT&T make S800, Veron makes 500ATAT make $700, vernzon makes 5700ATAT make S0o0, Vertzon makes 5000ATAT make 5750, Verlzon makes $750

Formula:- TR=Price×QuantityTC=Marginal cost×QuantityProfit=TR-TC Given; MC=$10 FC=$0

Smaitown has 140 residents and hwo motle phone provders Verton and ATAT Each fms costs FC S0, MC $10 Assume the two fems colude and shale the pros equaly Assune Version cheats by signing p 10 more cutomers. Asume ATST responds by Increasing it output to 40. What is each fems profts? Q TR TC Profit 45 50 40 60 35 70 30 80 25 90 20 100 15 110 10 120 130 140 ATAT make 5800. Verton makes S00 ATAT make $700, vertzon makes S700 ATAT make S00, Veron makes s000 AT&T mae S750, verteon makes S750

Smaitown has 140 residents and hwo motle phone provders Verton and ATAT Each fms costs FC S0, MC $10 Assume the two fems colude and shale the pros equaly Assune Version cheats by signing p 10 more cutomers. Asume ATST responds by Increasing it output to 40. What is each fems profts? Q TR TC Profit 45 50 40 60 35 70 30 80 25 90 20 100 15 110 10 120 130 140 ATAT make 5800. Verton makes S00 ATAT make $700, vertzon makes S700 ATAT make S00, Veron makes s000 AT&T mae S750, verteon makes S750

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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