User Account

All Pages

Profit payoff matrix for oligopolists c and d

Assignment Help Microeconomics
Reference no: EM131026203

Explain the general meaning of the following profit payoff matrix for oligopolists C and D.  All profit figures are in thousands.

a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries.

b.  Assuming no collusion between C and D, what is the likely pricing outcome?

c.   In view of your answer to 6b, explain why price collusion is mutually profitable.  Why might there be a temptation to cheat on the collusive agreement?

2302_11.png

Reference no: EM131026203

Questions Cloud

What is the net present value of the project : Altman Hydraulic Corporation will invest $135,000 in a project that will produce the cash flow shown below. The cost of capital is 11 percent. (Note that the third year's cash flow is negative.) Use Appendix B. Year Cash flow 1 $ 46,000 2 54,000 3 (6..
Ethics & law overlap : 3.  Ethics & Law overlap. This is called... A. A) Yellow area B. B) White area
What circumstances will the holder of option make profit : Suppose that a march call option to buy a share for $50 costs $2.50 and is held until march. Under what circumstances will the holder of the option make a profit? Under what circumstances will the option be exercised?
What amount should the investment grow in five years : Angie invested $150,000 she received from her grandmother today in a fund that is expected to earn 10% per annum. To what amount should the investment grow in five years if interest is compounded semi-annually?
Profit payoff matrix for oligopolists c and d : Explain the general meaning of the following profit payoff matrix for oligopolists C and D.  All profit figures are in thousands.a. Use the payoff matrix to explain the mutual interdependence that characterizes oligopolistic industries.
What is the value of the bradleys stock : The newspaper reported last week that Bradley Enterprises earned $2 per share this year. Bradley retains 60 percent of its earnings to reinvest in the company, where the return on the reinvestment is 14 percent. The cost of capital of Bradley is 12 p..
Prove that in a connected graph g every two longest paths : Prove that in a connected graph G every two longest paths have a common vertex.
What will be the balance : What will be the balance on September 1, 2020 in a fund which is accumulated by making $20,000 annual deposits each September 1 beginning in 2013, with the last deposit being made on September 1, 2020? The fund pays interest at 8% compounded annually..
Use the binomial option pricing to find the value of a call : Use the binomial option pricing to find the value of a call on €10,000 with a strike price of €17,000 the currency exchange rate is €1.20/€1.00 and in the next period the exchange rate can increase to €2.00/€ or decrease to €.9380/€. The current inte..

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain the law of downward-sloping demand

Over the last 30 years in the United States, the realprice of a college education after adjusting for inflation has increased by almost 70 percent.

  Explain why principle of diminishing marginal productivity

Explain the relationship between the economic concept of diminishing marginal productivity and the principle of increasing marginal costs?

  Ue price-cost formula to find out whether or not firms

problem-solving question use the following data for a pure monopoly to calculate the firms a total revenue marginal

  You have been contracted by an economic consulting firm to

you have been contracted by an economic consulting firm to determine the economic structure and possible future actions

  Explain why private firms would not run a lighthouse

Illustrate using a fully labeled supply and demand graph what such an artificial price looks like - Explain what the results of such a move are for the graham cracker market - Explain in economic terms why private firms would not run a lighthouse.

  Describe four unknown-unknown sources of risk

Describe four unknown-unknown sources of risk that can affect a supply chain and four known-unknown sources of risk that can affect a supply chain.

  Question about national debt

About the topic of national debt, it just likes we lent money from our offspring. Most of us think the debt is bad.

  Expect to gain from international trade

Countries can expect to gain from international trade as long as they keep production diversified

  How would you describe the complexity

How would you describe the complexity of the health industry in terms of workforce, environment, and social expectations? How would a health leader successfully navigate this complexity?

  Draw the payoff trees of each assets

Draw the payoff trees of each assets

  Calculate the monopolists profit

Calculate the monopolist's profit.

  Corn prices are up more than 60 over the last seven weeks

corn prices are up more than 60 over the last seven weeks as the worst drought in more than half a century blankets the

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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