ECO 112 - Monopolistic Competition and Oligopoly Monte Carlo Questions The marginal cost of mining gold is constant at $300 per ounce. The demand schedule is listed below. Price Total Output Total Revenue Total Cost Marginal Cost Marginal Revenue Profit 1000 1000 900 2000 800 3000 700 4000 600 5000 500 6000 400 7000 300 8000 1.1f there is a very large number of sellers of gold, what price and quantity will be sold? 2.1f there is only one supplier, what would be the price and quantity? 3. If there are only two suppliers and they compete with each other, what would be the price and quantity produced by each supplier? How much profit will be earned by each supplier? 4. 1f there are only two suppliers and they form a cartel, what would be the price and quantity produced by each supplier? How much profit will be earned by each supplier? 5. Suppose the two suppliers form a cartel, but one supplier decides to increase its production by 1000 o unces (cheating on the agreement made with the other firm). What would be the price and quantity produced by each supplier? How much profit will be earned by each supplier? 6. | will reroll