What will be the price and the output they produce

Assignment Help Macroeconomics
Reference no: EM13212505

Price (dollars per unit) Quantity demanded (units) 30 0 25 10 20 20 15 30 10 40 5 50 0 60 6) The table above has the market demand schedule in an industry that has two firms in it. The marginal cost of this product is zero because these two firms have exclusive ownership of the resource and it does not cost any additional amount to produce additional units.

a) If the firms cooperate with each other so that they operate as a monopoly, what price will they charge and what (total) output will they produce?

b) If the firms cannot cooperate but instead behave as perfect competitors, what will be the price and the (total) output they produce?

Reference no: EM13212505

Questions Cloud

The lewis structure most like that of phosphorous trichlorid : Which of the following molecules or ions will have a lewis structure most like that of phosphorous trichlorid,
Do additional substitutes need to added to the market : Suppose that the "Small but Significant and Nontransitory Increase in Price" threshold is 5%. Making use of critical elasticity of demand analysis, do the existing producers of this product represent an antitrust market, or do additional substitut..
What is the pressure drop associated with the airflow : What is the total rate of heat transfer to the air? What is the pressure drop associated with the airflow?
What size sample must be taken so that the percent purity : What size sample should be taken so that the percent purity is equal to five times the milliliters of 0.05M NaOH used to titrate it?
What will be the price and the output they produce : The table above has the market demand schedule in an industry that has two firms in it. The marginal cost of this product is zero because these two firms have exclusive ownership of the resource and it does not cost any additional amount to produc..
Determine the final temperature of the water : one part of the tank contain 2.5 kg of compressed liquid water at 60 C and 600 kPa while the other part is evacuated. the partition is now removed, and the water expands to fill the entire tank. Determine the final temperature of the water and the..
What is the total force reaction : What is the total force reaction (magnitude) at pin joint O when the square plate is released from rest? Assume the plate has a uniform thickness.
Determine the maximum allowable force p : a uniform rectangular cabinet having dimensions shown and mass m=50kg is placed onto a cart of mass 10 kg as shown. no slipping between cabinet and cart. determine the maximum allowable force P so that the cabinet does not tip.
How the self-correcting mechanism would work : Assume an economy in long and short run equilibrium in the Aggregate Deamnd/Aggregate Supply model. There is a sudden drop in consumer confidence in the solvency of pension funds. Explain, with support from a graph, how this is shown in the AD/AS ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd