Collude to produce the monopoly output

Assignment Help Business Economics
Reference no: EM138889

Q1. a. Distinguish between monetary policy instruments and monetary policy tools.

b. Describe any two key tools of monetary policy, and describe how they would be used to implement expansionary monetary policy.

Q2. Suppose that two firms compete in quantities (cournot) in a market in which demand is described by: P=260 -2Q. Each firm incurs no fixed cost but has a marginal cost of 20.

a. What is the one-period Nash equilibrium market price? What is the output and profit of each firm in this equilibrium?

b. What is the output of each firm if they collude to produce the monopoly output? What profit does each firm earn with such collusion?

Reference no: EM138889

Questions Cloud

Piece of commercial real estate : Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
Equilibrium level of output in this economy : what is the short run equilibrium level of output in this economy.
Has a registered trademark : A firm has developed a new product for which it has a registered trademark.
Collude to produce the monopoly output : What is the output of each firm if they collude to produce the monopoly output. What profit does each firm earn with such collusion.
Result of deaths from secondhand smoke : How much output is lost as a result of deaths from secondhand smoke, according to the news.
Character of demand is elastic : How to calculate the elasticity coefficient between each of the seven prices and indicate whether the character of demand is Elastic.

Reviews

Write a Review

Business Economics Questions & Answers

  Annual percentage change in velocity

What would the annual percentage change in velocity have to be on average for the quantity theory to hold.

  Relevant preference relationships

Suppose the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people.

  Illustrate the exact real rate

what is the approximate real rate of interest. Illustrate the exact real rate.

  How would keynesian solve

How would Keynesian solve a recessionary gap using personal tax rates.

  Real world to strengthen your position

Make sure to make available examples of real world to strengthen your position of wherever this might be case

  Inverse demand curve

Solve for steady-state level of captial and output. What savings rate would be necessary to achieve a steady-state output of 150.

  Rationale of the reagan administration

Compare the rationale of the Reagan administration for the 1981 tax reductions with the rationale behind the Kennedy-Johnson tax cut of 1964

  Golden rule level of capital per effective worker

Calculate the Golden Rule level of capital per effective worker and the saving rate associate with this steady state.

  Marketplace for tobacco

Assume there is a drought that destroys a large portion of the tobacco crop. Explain what happen in the marketplace for tobacco.

  Economics analysis of that liability standard

Give an economics analysis of that liability standard for product-related harms.

  Probability of returns

If the returns of the risky portfolio are normally distributed, what is the probability of returns being less than 29%.

  Economic principles of taxation

State two economic principles of taxation and which principle best justifies the excise tax on gasoline, when the tax revenue is used to maintain or improve the roads.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd