Reference no: EM131356479
Open Word and answer the following questions. Save the document and print it when you are done. Suppose the inverse demand curve is P = 1000 - 0.5Q, marginal cost is constant at $100 per unit, and the world price is $50. Enter these parameter values in the Compare sheet and answer the questions below. Enter the demand slope as a positive number, 0.5, and click one of the market structure options to refresh the chart. The math theory prep section showed two surprising results. First, consumers' and producers' surplus under the cement cartel do not depend on the marginal cost of capacity. Second, as the number of firms in the cartel rises, the likelihood a merger to monopoly will be welfare enhancing rises. To answer the questions that follow, taking pictures is helpful. You can select cells (e.g., A1:M25) and copy as a picture, then paste.
1. Increase MC from 100 to 200 and determine the impact on the cartel's Q, P, CS, PS, DWL, and export loss. What happens to each of these variables as MC rises? Be sure to click the Perfect Competition and then Cartel option button to refresh the data below the buttons.
2. Which changes, if any, in the variables are surprising? Why?
3. At what value of MC will there be no exports? Take a picture of this situation and paste it in your Word document.
4. Increase the number of firms from 3 to 5 (with MC at the no export loss value). What effect does this have on the cartel's Q, P, CS, PS, DWL, and export loss?
5. What can you conclude about the effect of the number of firms on PS from a merger to monopoly (from the cartel)?
|
Give an example of a positive externality in consumption
: Analyze the welfare effects of a positive externality in consumption. Use Word's Drawing Tools to support your answer with a demand and supply graph.
|
|
What is the total vehicle life-cycle cost
: Hartley Auto Supply delivers parts to area auto service centers and is replacing its fleet of delivery vehicles. What is the total vehicle life-cycle cost of this gasoline engine truck given the information provided in the following table
|
|
Write an essay reflecting upon that persons life
: First, click this link and read or listen to this resource on the History of Psychology. Next select one individual mentioned in the article and write an essay reflecting upon that person's life and contributions to the field of psychology.
|
|
What was new or you had not thought about before
: MGMT 450- What was new or you hadn't thought about before? Is strategy something that you might be able to use in your future career, and if so, speculate about how? If not, that's okay, but tell me why not.
|
|
At what value of mc will there be no exports
: Increase MC from 100 to 200 and determine the impact on the cartel's Q, P, CS, PS, DWL, and export loss. What happens to each of these variables as MC rises? Be sure to click the Perfect Competition and then Cartel option button to refresh the dat..
|
|
Description of the new image processing system
: If the image and record do not match (for instance, a three-leg ticket sold but only two legs used), the ticket number is included in the audit data. If the image and record do match, the ticket record is written to the passenger revenue data.
|
|
Is it the same across different historical times or eras
: Is the experience of being an adolescent the same for males and females? Is it the same across different historical times or eras? What about across different cultures or subpopulations within a culture? This assignment involves exploring similari..
|
|
What is the revenue retrieval for the gf deluxe
: Green Forever's challenge (see Problem) is to determine which design alternative is the better environmental choice if it uses a different battery for the Premium Mate. What is the revenue retrieval for the GF Deluxe
|
|
Find the average acceleration in reaching maxi mum speed
: Calculate the acceleration of a 2000-kg, sin-gle-engine airplane just before takeoff when the thrust of its engi ne is 500 N - Calculate the acceleration of a 300 000-kg jumbo jet just before takeoff when the thrust for each of its four engines is 3..
|