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28 Sep 2019
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. Complete the marginal-cost andmarginal-revenue schedules facing the firm.
Output Total Cost
Marginal Cost
Price Quantity Demanded
Marginal Revenue
0
$ 0
1
60
$______
$ 260
1
$______
2
100
240
2
3
160
220
3
4 240
200 4 5 340
180 5 6 460
160 6 7
600
140
7
8 760
120
8
Thank You
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. Complete the marginal-cost andmarginal-revenue schedules facing the firm.
| Output | Total Cost | Marginal Cost | Price | Quantity Demanded | Marginal Revenue |
| 0 | $ 0 | ||||
| 1 | 60 | $______ | $ 260 | 1 | $______ |
| 2 | 100 | 240 | 2 | ||
| 3 | 160 | 220 | 3 | ||
| 4 | 240 | 200 | 4 | ||
| 5 | 340 | 180 | 5 | ||
| 6 | 460 | 160 | 6 | ||
| 7 | 600 | 140 | 7 | ||
| 8 | 760 | 120 | 8 |
Thank You
manhokwe tawandaLv10
28 Sep 2019
