1 The graph below shows the demand for nectar in Gardenia.2016128.44080 120 160 200 240 280Quantity per periodPrice24 Suppose that there are only two firms, Ace and Pace, producing nectar, and they decide to act as a cartel (monopoly) and share themarket equally.a. What price and output will maximize their joint total revenue, and what amount is that?Price: $Output:Total joint revenue: $b. In the payoff matrix in table below, show in cell A the amount of total revenue each will receive if they stick to the agreement.AceKeep agreementCell ABreak agreementCell BАce:Ace:КеepagreementPace:Расе:PaceCell cCell DBreakAce:Ace:agreementPace:Расе:c. Suppose that Ace believes that Pace will honour the agreement by maintaining his present output. However, Ace decides to cheatand increase his output by two-third. What will be Ace's and Pace's total revenues? Show Ace's and Pace's results in celI B.d. Now, assume that the positions are reversed and that Pace decides to cheat while assuming that Ace will stick to the agreement.Show Ace's and Pace's resulting revenues in cell C.e. Finally, in cell D show the total revenue of Ace and Pace that would result if they both cheat.

We can find the demand function from the demand curve by using the intercepts

Answered: The graph below shows the demand for…

The graph below shows the demand for nectar in Gardenia. 20 16 12 8. 4 40 80 120 160 200 240 280 Quantity per period Price 24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: It says 6Qs NOT 60s, can you please redo

A: Demand:Demand is the desire of an individual ability and willingness to pay for a product. The…

Q: Question 4 of 10 When you support a A. small business OB. large corporation R you are more likely to…

A: Small business and large busines are the businesses that are differentiated on the basis of their…

Q: There is an economic impact to losing a customer. Describe 4 ways it can impact a company and if…

A: An person or corporation that purchases products or services from another firm is known as a…

Q: Give examples of pre-startup expenses

A: As the name suggests PRE-STARTUP where Pre means before. So, Pre startup costs are the costs that…

Q: Shades and Tints

A: A tint is a colour mixed with white to increase lightness, whereas a shade is a colour mixed with…

Q: How was TVC calculated?

A: TVC is total variable cost in a cost structure of a model. Total variable cost is showing the…

Q: HO NEEDS TO HAVE THE SHIP'S ROUTEING?

A: Ship Routing is a part of International trade. Most of the trade among the countries is done through…

Q: Please answer full questions including fill in the blanks.

A: When an initial injection into a circular flow results in a larger ultimate rise in real national…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: How purchasing power affect the business?

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: 1 Describe the four types of inventory.

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Quantity Plates Utility from Plates Quantity Cups Utility from Cups 1 33 1 15 64 2 3 4 LO 5 1.0 6 93…

A: The information given is as follows:-Louis is trying to decide what combination of cups and plates…

Q: Use image

A: The spending function represents the relationship between household spending and total income. When…

Q: What is the role of the procurement or negotiations professional?

A: To work out a deal, negotiations professionals play a crucial role and they are much critical in…

Q: What is the role of technological change in asset improvement?

A: In virtually every sector, new technology is transforming the face of business-from banking to food…

Q: Which project should be chosen? Why?

A: To calculate the benefit-to-cost ratio for both projects, we need to determine the total benefits…

Q: Calculate forecast for the month 5 using 2 month moving average method. Month 1 2 3 Sales 10 12 13…

A: Using the 2 months simple moving average method, the sales forecast for the 5th month is = (Sales…

Q: What are some common examples of expenses?

A: To generate revenue, the business organizes many activities. The cost of doing these activities are…

Q: what is mode of entry meaning?

A: Mode of entry refers to different channels through which a business can enter the international…

Q: What is the lower present value product?

A: The present value is the current worth of a stream of future cashflows given a certain return rate.…

Q: B (iii) to (v)

A: AC(average cost) is the ratio of the TC(total cost) and the q(quantity). It is U-shaped in…

Q: (Figure 1.9) The slope of the line between points L and M is: Multiple Choice O O O 0.67. 1.20.…

A: In economics, the term "slope" generally refers to the gradient or incline of a linear relationship…

Q: what are types of saving vehicles

A: Savings is the money left over after subtracting a person's consumption expenses from their…

Q: Which of these is the tenant's responsibility? Taking reasonable care of the property, giving notice…

A: a person who gives money to the owner of a room, flat, house, or piece of property in order to…

Q: 20+100+200000

A: 100+20+200000120+200000200120

Q: What are the deductible expenses?

A: Expenses are the operating costs incurred by a company to generate revenue. Common expenditures…

Q: What are the excel formulas used

A: From equation 1 The short-run production function is q=-0.6L3+18L2+10L Cost function: C(L)=100L+800…

Q: What are the benefits of Surveying Current Business?

A: Benefits of surveying current business Helps to get feedback about the product Helps to take future…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: You would like to open a hot dog stand at local game stadium. The fixed fee foir this stand is $500…

A: Break even point is the point where total revenue is equal to total cost . Or average cost is equal…

Q: absolute deeds of sale vs conditional sale

A: Consider the scenario of a sale of a property. Here, the ownership of the property is transferred to…

Q: True/False Personal income include personal taxes

A: Personal income is that the quantity of cash put together received by the inhabitants of a rustic.…

Q: How to calculate break even point, and give example.

A: The main objective of every firm is to maximize profits. Profits are the surplus income earned by…

Q: What analytical procedures would you undertake to reach a

A: Analytical procedures are used by experienced auditors throughout the auditing process. Analytic…

Q: Q1 Amouage perfume Oman also called the 'The Gift of Kings', is the finest fragrance from the heart…

A: Amouage is a rich sign of luxury, craftsmanship, uniqueness, traditional beliefs, excellence, and…

Question

The graph below shows the demand for nectar in Gardenia.
20
16
12
8.
4
40
80 120 160 200 240 280
Quantity per period
Price
24

Suppose that there are only two firms, Ace and Pace, producing nectar, and they decide to act as a cartel (monopoly) and share the
market equally.
a. What price and output will maximize their joint total revenue, and what amount is that?
Price: $
Output:
Total joint revenue: $
b. In the payoff matrix in table below, show in cell A the amount of total revenue each will receive if they stick to the agreement.
Ace
Keep agreement
Cell A
Break agreement
Cell B
Аce:
Ace:
Кеep
agreement
Pace:
Расе:
Pace
Cell c
Cell D
Break
Ace:
Ace:
agreement
Pace:
Расе:
c. Suppose that Ace believes that Pace will honour the agreement by maintaining his present output. However, Ace decides to cheat
and increase his output by two-third. What will be Ace's and Pace's total revenues? Show Ace's and Pace's results in celI B.
d. Now, assume that the positions are reversed and that Pace decides to cheat while assuming that Ace will stick to the agreement.
Show Ace's and Pace's resulting revenues in cell C.
e. Finally, in cell D show the total revenue of Ace and Pace that would result if they both cheat.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step by step

Solved in 4 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

What cultural aspects (language, religion, customs) a company must have in the area of technology
What are standard deductions?
Connor has a summer job which pays $1,589 for the entire summer. If 22% is taken out for federal taxes, then how much is deducted
So what does it look like if it is right after the tax year?
Typed plz And Asap thanks
what are types of savigs vehicles
The waste Management faud case What impact did the fraud have on the company? What recommendations would you give the company to prevent fraud?
Solve the attachment. image
The value of savings is $250 and the income is $800 Calculate the value of APC
It tells me these are not correct either