ECON 1B03 Lecture Notes - Lecture 11: Monopoly Profit, Oligopoly, Market Price

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15 Nov 2018

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ECON 1B03 Lecture Notes - Lecture 10: Economic Surplus, Competitive Equilibrium

ECON 1B03 Lecture Notes - Lecture 11: Monopoly Profit, Oligopoly, Market Price

ECON 1B03 Lecture 12: ECON 1B03 Lecture : ECON 1B03 Lecture : ECON 1B03 Lecture 9 Consumer Teoryh

Document Summary

Econ 1b03 workshop 8: oligopoly and resource markets. If they can enter, it becomes a perfectly competitive. Practice questions outcome: there are 2 firms in an oligopoly in the market for table salt. Each firm has constant mc = 60 = atc. To maximize profits, cartel would split the monopoly oucome. Mr = mc: 100 2q = 60. Each firm would produce 10 and earn profit -. Q=20: suppose firm #1 decided to cheat on the cartel agreement and produce 15. Firm #2 continues to stick to the agreement. Firm makes profit (75-60)(10) = : firm #2 realizes that firm #1 has cheated. Firm #1 makes profit = (70-60)(15) = . Firm #2 makes profit = (70-60)(15) = : the following table gives data for spark seeds, a company that packages vegetable seeds for sale to different garden centres in ontario.

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An oligopoly producing a homogeneous product is composed ofthree firms that act like a cartel. Assume that these three firmshave identical cost schedules. Assume also that if any one of thesefirms sets a price for the product, the other two firms charge thesame price. As long as they all charge the same price they willshare the market equally; and the quantity demanded of each will bethe same.

Below are the total-cost schedule of one of these firms andthe demand schedule that confronts it when the other firms chargethe same price as this firm.

Output	Total Cost	Marginal Cost	Price	Quantity Demanded	Marginal Revenue
0	$ 0
1	60	$ 60	$ 260	1	$ 260
2	100	40	240	2	220
3	160	60	220	3	180
4	240	80	200	4	140
5	340	100	180	5	100
6	460	120	160	6	60
7	600	140	140	7	20
8	760	160	120	8	-20

B) If the firms collude to maximize joint profits, what would bethe industry price, output, and profit?

Thank You

burgundylizard322

Below are the total-cost schedule of one of these firms andthe demand schedule that confronts it when the other firms chargethe same price as this firm.

Output	Total Cost	Marginal Cost	Price	Quantity Demanded	Marginal Revenue
0	$ 0
1	60	$ 60	$ 260	1	$ 260
2	100	40	240	2	220
3	160	60	220	3	180
4	240	80	200	4	140
5	340	100	180	5	100
6	460	120	160	6	60
7	600	140	140	7	20
8	760	160	120	8	-20

B) If the firms collude to maximize joint profits, what would bethe industry price, output, and profit?

Thank You

amberantelope118

An oligopoly producing a homogeneous product is comprised ofthree firms that act like a cartel. Assume that these three firmshave identical cost schedules. Assume also that if any one of thesefirms sets a price for the product, the other two firms charge thesame price. As long as they all charge the same price they willshare the market equally; and the quantity demanded of each will bethe same.

Below are the total-cost schedule of one of these firms andthe demand schedule that confronts it when the other firms chargethe same price as this firm.

Output	Total Cost	Marginal Cost	Price	Quantity Demanded	Marginal Revenue
0	$ 0
1	180	$180	$ 780	1	$780
2	300	120	720	2	660
3	180	180	660	3	540
4	720	240	600	4	420
5	1020	300	540	5	300
6	1380	360	480	6	180
7	1800	420	420	7	60
8	2280	480	360	8	-60

B) If the firms collude to maximize joint profits, what would bethe industry price, output, and profit?

Thank You

pearyellowjacket468

ECON 1B03 Lecture Notes - Lecture 11: Monopoly Profit, Oligopoly, Market Price

ECON 1B03 Lecture Notes - Lecture 10: Economic Surplus, Competitive Equilibrium

ECON 1B03 Lecture Notes - Lecture 11: Monopoly Profit, Oligopoly, Market Price

ECON 1B03 Lecture 12: ECON 1B03 Lecture : ECON 1B03 Lecture : ECON 1B03 Lecture 9 Consumer Teoryh

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