Determine what is the cartels profit maximizing price of oil

Assignment Help Econometrics
Reference no: EM13231556

Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q what is the cartel's profit maximizing price of oil?

Reference no: EM13231556

Questions Cloud

Analyze how the stipulations of the treaty of versailles : Analyze how the stipulations of the Treaty of Versailles that ended World War I, along with the Great Depression of the 1930s, contributed to the outbreak of World War II.
Explain how to increase the temperature of solid diamond : In the laboratory a student finds that it takes 96.8 Joules to increase the temperature of 14.3 grams of solid diamond from 24.0 to 38.1 degrees Celsius.
Analyze how nationalism and militarism contributed : Analyze how nationalism and militarism contributed to the outbreak of World War I.
Find the optimum number of units to be produced : Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.
Determine what is the cartels profit maximizing price of oil : Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q what is the cartel's profit maximizing price of oi..
Analyze how the reforms of mikhail gorbachev led : Analyze how the reforms of Mikhail Gorbachev led to the breakup of the Soviet Union. Point out what events led to the ascendency of Gorbachev to party leadership, and then identify and analyze Gorbachev's reforms.
What is price of oil and quantity of oil produced by cartel : Suppose that 3 countries who form a cartel agreed to divide the oil market equally. Demand for oil is given by P=50-.1Q where P is the price of oil in dollars per barrel and Q is the Quantity in thousands of barrels per day.
Explain what is parity rule : For each of these three chemicals, state how the "parity rule" is (or is not) obeyed by the MS data. If this question cannot be answered for a chemical, state briefly why not (for example, what additional data would be needed or why the situation ..
Define the plant likeprotist : I have been asked to make a labelled drawing of a plant-likeprotist (using the Euglena as the example), which I have done

Reviews

Write a Review

Econometrics Questions & Answers

  Compute the resulting change in consumer surplus

After the firm's patent expires, predict the new market output and price. (Assume that competing suppliers have the same economic costs as the original producer.) Compute the resulting change in consumer surplus.

  Estimated cost of dinner includes per person 3 course meal

Mehnaz has already made arrangements for her birthday celebration: she is inviting her 7 friends to a dinner party at a famous Montreal restaurant. The estimated cost of this dinner includes $55 per person for the 3 course meal, as well as 4 bott..

  What is probability that any randomly chosen phone is dull

Suppose cell phones are available in two basic types: Flashy or Dull. Furthermore, suppose cell phone owners fall into two basic categories: Hipsters or Grannies. Let .55 be the probability of being a Hipster. Also, 40% of cell phones are both Flas..

  What is the annual growth rate of real gdp

Suppose labor's share of GDP is 70 percent and capital's is 30 persent, total factor productivity is growing at an annual rate of 2 percent, the labor force is growing at a rate of 1 percent, and the capital stock is growing ata rate of 3 percent.

  Which option is better to keep marr effective

buy a computer for $2,500 now, keep it for 8 years and then sell it for $800. The computer is not expected to require any maintenance for the first 3 years, but starting in year 4, the maintenance cost will be $250 per year. Alternatively, you can..

  How many units will the firm produce in the short-run

Given below are the cost schedules for a perfectly competitive firm. Average Average Variable Total Marginal Quantity Cost Cost Cost 1 $ 50 $ 90 $ 50 2 45 65 40 3 40 53 30 4 35 45 20 5 34 42 30 6 35 41 40 7 37 43 50 8 40 45 60

  Determine the cross elasticity of lorenas demand

Lorena likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Lorena's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie ..

  What are the implications in our economy of output

Between October 2004 and 2005, real GDP in the United States increased by 3.6 percent, while nonfarm payroll jobs increased by only 1.4 percent. How is it possible for output to increase without a proportional increase in the number of workers

  Estimate of cross-price elasticity of demand for gasoline

Provide an estimate of the cross-price elasticity of demand for gasoline, both with respect to new cars and with respect to used cars. Are these estimates statistically significant? Do they align with economic theory? Give an interpretation of y..

  Do the opportunity costs of borrowing and using differ

Lenders perceive that you are risky, so you must pay 12 percent annual interest to borrow from one of them. You only receive 6 percent on funds you have deposited in the bank. Do the opportunity costs of borrowing and using your own funds differ i..

  Calculate equilibrium levels of the real wage and employment

Assume tax rate on labor income t=.6. Find the equation of the labor demand curve. Calculate equilibrium levels of the real wage and employment, the level of full employment output, and the total after tax wage income of workers.

  What is change in producer surplus if an increase in demand

Suppose that P = $150 and Q = 1500 in an industry that has Demand and Supply functions of P = 210 - 0.04Q and P = 60 + 0.06Q. What is the change in producer surplus if an increase in Demand increases equilibrium P to $180 and equilibrium Q to 2000

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