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please help with monopoly and duopoly This table shows the demand schedule for a monopolist's product. Assume that the marginal cost of production is zero.
please help with monopoly and duopoly
This table shows the demand schedule for a monopolist's product. Assume that the marginal cost of production is zero. Price per ton (1000 Euro) a) Quantity demanded (Tons) N U'l 5.1 on l" The monopolist currently produces 40 tons at a price of 4. If the monopolist were to produce 10 more tons, what would be the price effect? And what would be the quantity effect? Would the monopolist have an incentive to produce those 10 additional tons? Assume that a second firm enters the market and the market is now a duopoly. The two firms agree to produce 40 tons of the product in total, 20 tons each. If the first firm, on its own, were to deviate from that agreement and produce 10 more tons, what would be the price effect for the first firm? What would be the quantity effect? Would the firms have an incentive to produce those 10 additional tons?|Step by Step Solution
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