Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $5,000
The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face $5,000 of fixed costs per month. There are no marginal costs. Quantity 400 600 800 1,000 1,200 1,400 1,600 30 Price ($) 25 20 15 10 5 0 TR ($) 12,000 15,000 16,000 15,000 12,000 7,000 0 MR ($) 3,000 1,000 -1,000 -3,000 -5,000 -7,000 Instructions: Enter your answers to the nearest whole number. a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist is $ b. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $ and for duopolist B $
Step by Step Solution
★★★★★
3.43 Rating (156 Votes )
There are 3 Steps involved in it
Step: 1
Step 1 a Both duopolist combined and now acts as monopolist In absence of marginal cost acting ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Document Format ( 2 attachments)
635d8042b03b8_176208.pdf
180 KBs PDF File
635d8042b03b8_176208.docx
120 KBs Word File
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started