ECON 1050 Chapter 15: Economics-1 (1) (dragged) 5

26 views1 pages

Document Summary

Suppose the cheat increases its output to 3,000 units. Industry output increases by 5,000 and the price falls. For the complier, atc now exceeds the price. For the cheat, the price exceeds atc. Suppose that both increases their output to 3,000 units. Industry output is 6,000 units, the price falls. Both firms make zero economic profit the same as in perfect competition. If both comply, each firm makes million a week, If both cheat, each firm makes zero economic profit. If trick complies and gear cheats, trick incurs a loss of million and gear makes a profit of. If gear complies and trick cheats, gear incurs a loss million and trick makes a profit of.

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