EC120 Lecture Notes - Lecture 15: Strategic Dominance, Monopolistic Competition, Nash Equilibrium

200 views6 pages
Verified Note
29 Oct 2018
School
Department
Course
Professor

Document Summary

Use mr and mc to find profit maximizing prices if firm can price discriminate between workers and tourists. Use mr and mc to find profit maximizing price if firm can"t price discriminate between workers and tourists. A cartel is a group of firms that agree to maxmize the sum of member profits (joint profits) If all firms join the cartel then the cartel produces at the monopoly level by . Setting industry mr = industry mc (mci) Mci is dervived by equating mc across firms. Using quotas to restrict output of each firm. Deterring the entry of non member firms. No entry barriers =0 in lr. Firms act as price setters no supply curve. Number of firms adjusts to yield zero profits. Firm acts as a price setter no supply curve. Producing where mr = mc and setting p>mc. Assuming that rivals are also maximizing profits.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions