MATH 222 Midterm: MATH 222 Binghamton Test Solutions1

• School: Binghamton University
• Department: Mathematical Science
• Course: MATH 222
• Professor: All

Document Summary

1: sherman and clayton acts, state sec. 1 of the sherman act: state the three prohibitions of the sherman act, sec. 2: how did pre-alcoa decisions regarding the de nition of what constituted a viola- tion of the sherman act di er from the alcoa de nition, what is the two-pronged test of monopoly power? i) ii) Complete the following model that illustrates why a cartel is inherently un- stable. The average and marginal cost for each of n competitive rms is drawn in. 1 and the sum of all rm"s marginal costs (pi m ci) is drawn in g. 2 along with the aggregate demand curve, d. first, determine and label the competitive price and quantity as pc and qc. Extend pc to the left until it intersects the. Label the output by the typical competitive rm as qc. Now assume that the industry becomes a cartel.