FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose that the market demand for mountain spring water is given as follows: P = 1200 - Q Mountain spring water can be produced at

Suppose that the market demand for mountain spring water is given as follows:

P = 1200 - Q

Mountain spring water can be produced at no cost, so MC=0.

Suppose that there is only one firm in the market.Marginal revenue for a monopolist is given by MR = 1200 - 2Q.

Profit maximizing price in this market is 600.

How much profit could each firm earn if they formed a cartel?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Economics

International Economics

Authors: James Gerber

7th edition

ISBN: 134472098, 134523873, 978-0134472096

More Books

Students also viewed these Economics questions

Question

★★★★★
A bowling ball of mass M and radius R is thrown such that at the instant it touches the floor it is moving horizontally with a speed v 0 and is not rotating. It slides for a time t 1 a distance s 1...

Answered: 1 week ago

Question

★★★★★
A company has found that total sales, in thousands of dollars, are given by the function where x is the number of weeks after a major advertising campaign was introduced. What were total sales 6...

Answered: 1 week ago

Question

★★★★★
=+b) What is the minimin choice?

Answered: 1 week ago

Question

★★★★★
The cash budget and the budgeted statement of cash flows both provide information about cash. What information about cash is common to these two sources, and what information is unique to the two...

Answered: 1 week ago

Question

★★★★★
Statement of Partnership Liquidation After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Silver, Carillo, and Tingley are $24,300, $34,200, and...

Answered: 1 week ago

Question

★★★★★
4. The most general form of Jone's vector can be represented as Ex Axejox Ax J=(E) - (^,^, (4, e), where 6 = 6,-, The instantaneous Ex and Ey can be represented as: Ex = Acos (wt kz + 8x), Ey = A,...

Answered: 1 week ago

Question

★★★★★
Calculate the "Room Total" for the first transaction. Use an IF function to calculate a 10% discount for any stay greater than or equal to 7 nights. Copy and paste the function down the column to...

Answered: 1 week ago

Question

★★★★★
During the cherry blossom time in Houston, the sales for 'The Black House' tends to increase. Due to pandemic, the gift shop management decide to keep the shop open during weekends (Friday, Saturday,...

Answered: 1 week ago

Question

★★★★★
A motorist needs to visit a total of 6 cities over the course of the next few days and wants to minimize the total distance driven to visit all 6 cities. The distances between each pair of cities is...

Answered: 1 week ago

Question

★★★★★
The velocity of the bullet with mass mk has an angle with respect to the horizontal. The speed of the bullet is Vk when it hits a block with mass m. The bullet remains caught in the block. As a...

Answered: 1 week ago

Question

★★★★★
5. Neil Special Pottery, LLC has decided to use a regular output of 800 units per month for this year. They can use overtime up to 80 units per month and use subcontracting for the remaining units to...

Answered: 1 week ago

Question

★★★★★
On Navember 1 . 2 0 2 4 . Quantum Technology, a geothermal energy supplier, borrowed $ 2 0 million cash to fund a geological survey. The ban was made by Nevada BancCarp under a noncommitted short -...

Answered: 1 week ago

Question

★★★★★
The official stamp rule: We tend to have more confidence in information that is exempt from the Freedom of Information Act than if the same information was made readily available.

Answered: 1 week ago

Question

★★★★★
4. Based on a message you have recently received, analyse it in relation to its three components: a. the information component, b. its relational component and c. its hierarchical component.

Answered: 1 week ago

Question

★★★★★
3. Give an example of a problem or phenomenon in everyday life where information is presented in an emotional way.

Answered: 1 week ago

Previous QuestionNext Question