Reference no: EM13818067
Handy Manufacturing Industry Trade Association recently published the following estimates of Demand and Supply relations for hammers
QD = 60,000 - 10,000P (Demand)
QS = 20,000P (Supply)
A. Graph both the Demand and Supply functions, calculating the intercepts for both functions. (Since Supply goes through the origin, there is only one intercept. For a second point for Supply, use the quantity calculated for the quantity intercept of the Demand curve.)
B. Calculate the perfectly competitive industry equilibrium price/output combination.
Now assume that the industry output is organized into a cartel. Calculate the industry price/output combination that will maximize profits for cartel members. (Hint: To do this, convert aggregate [market] supply back to aggregate marginal cost, (MC = P). Then from inverted Demand calculate the MR function. Then use profit maximizing condition for cartel, namely: MC = MR.
C. Table and compare your answers to parts A and B. Calculate the price/output effects of the cartel.
|
Resource demand curves slope downward because
: Resource demand curves slope downward because?
|
|
Employs bricklayers and other skilled tradesmen
: Brenda owns a construction company that employs bricklayers and other skilled tradesmen. Her firm’s MRP for bricklayers is $22.25 per hour for each of the first seven bricklayers, $18.50 for an eighth bricklayer, and $17.75 for a ninth bricklayer. Gi..
|
|
Demand or supply for hairdressers when that minimum wage
: The market equilibrium wage is currently $12 per hour among hairdressers. At that wage 17,323 hairdressers are currently employed in the state. The state legislature then sets a minimum wage of $11.50 per hour for hairdressers. If there are no change..
|
|
Research screening tools and therapeutic interventions
: Research screening tools and therapeutic interventions that are relevant to clients with particular characteristics such as gender, age, disabilities, culture, and physical handicaps. Present a perspective of your choosing. Explain how you believe th..
|
|
Calculate perfectly competitive industry equilibrium price
: Handy Manufacturing Industry Trade Association recently published the following estimates of Demand and Supply relations for hammers. Calculate the perfectly competitive industry equilibrium price/output combination.
|
|
List of products you believe failed
: Make a list of products you believe failed because of poor marketing channel choices. Why do marketing professionals care about and participate in supply chain decisions
|
|
Amount of arithmetic-cost-effective
: If you were the CFO of a company that had to decide on hundreds of potential projects every year, would you want to use sensitivity analysis and scenario analysis or would the amount of arithmetic required take too much time and thus not be cost-effe..
|
|
How affirmative action is often presented in the media
: Affirmative action is one of the most controversial topics in employment law. How affirmative action is often presented in the media? How similar is that portrait to the one presented in Johnson v. Transportation Agency, Santa Clara County ? When are..
|