Determination for two firm cartel profit maximisation

Assignment Help Business Economics
Reference no: EM131006015

The world's top for manufacturers on inexpensive random access memory chips, a key component of all consumer electronic devices, agreed to fines and jail term for several executive because of 1999-2002 price fixing. The criminal conspiracy raised prices 400 percent in a six-month period from US$4 per 100 megabits and then orchestrated maintaining the price at US$3. DRAM chip are generic and easily substitutable between supplier. As a result, a CARTEL agreement to limit production is necessary to maintain price above competitive level. SAMSUNG and HYNIX, two KOREA firms that produce the majority of the chips, paid US$300 million and US$185 million fines respectively. Infineon Technologies or Germany paid a US$160 million fine, and four executives went to jail for several months and paid individual fines of US$250 000. Micron Technology of Boise, Idaho, receiced immunity for cooperating with the prosecutors and complainants DELL and HP in making the case.

(1) Use a suitable diagram to explain the price-output determination for a TWO firm Cartel profit maximisation and the allocation of restricted output respectively.

Reference no: EM131006015

Questions Cloud

Plantation slavery-about the development of market economy : Eric Williams contends that plantation slavery in the West Indies helped bring about the development of a market economy in England. Name one argument he uses to explain it,  and carefully explain how it helped foster a transition to the market solvi..
Differences between ifrs and u s gaap in the way leases : Describe the primary differences between IFRS and U.S. GAAP in the way leases are classified as either operating or finance (capital) leases.
An insurable risk for a business : An insurable risk for a business would be one that is due to: A. Changes in consumer tastes B. Changes in government policies C. Economic recession D. Accidents to employees Comment
Determines the extent of horizontal integration-scope : What are the boundaries of a firm? What determines the extent of vertical boundaries-vertical integration? What determines the extent of horizontal integration-scope? Use the cost-benefit analysis to describe the optimal boundaries of a firm.
Determination for two firm cartel profit maximisation : The world's top for manufacturers on inexpensive random access memory chips, a key component of all consumer electronic devices, agreed to fines and jail term for several executive because of 1999-2002 price fixing. Use a suitable diagram to explain ..
Consider our core values of excellence-community : Consider our core values of Excellence, Community, Integrity and Responsible Stewardship: Should the U.S. continue farm subsidies? Make sure to incorporate the concept of comparative advantage and gains from trade (vs competitive advantage)
Do the system and its function meet the requirements : Instructions: Health Information Systems Research: Compare and Contrast. Create a table in Word that lists and describes in detail the following information about each system: Features and Do the system and its function meet the requirements of meani..
What is the expenditure multiplier : The slope of the AE curve is .80. What is the expenditure multiplier? Everything else the same, by how much does equilibrium aggregate expenditure increase if
Calculate the relevant elasticities : When the price of good X is 100, the quantity demanded is 100. Calculate the relevant elasticities for the following changes: When the price of X changes to 50, the quantity demanded rises to 250. When the price of Y changes from 5 to 10, the quantit..

Reviews

Write a Review

Business Economics Questions & Answers

  What could the fed do in order to bring economy back

What could the Fed do in 2002-2003 in order to bring the economy back to full-unemployment ? What did the Fed actually do? Explain in detail

  Do you consider important to our overall economic health

do you consider important to our overall economic health and are things getting better or worse? Please use real-world facts (i.e. statistics) to back up your answer.

  Marketing cooperatives are most commonly found

In the United States, marketing cooperatives are most commonly found in the agriculture industry. According to the total revenue rule, if the coefficient of price elasticity of demand is less than 1 and if price goes. If the coefficient of elasticity..

  Calculate the degree of economies of scope and interpret

The Johnson Corporation produces 1000 wood cabinets and 500 wood desks per year, for total cost of $30,000. It has been estimated that if the firm produced 1000 wood cabinets only, the cost would be $23,000, and if the firm produced 500 wood desks on..

  Significance and the sample data to test the hypothesis

Mars Inc. manufacturers M&Ms the milk chocolate comes in a variety of colors : blue, brown, green, orange, red, and yellow. the overall proportions for the colors are 0.24 blue, 0.13 brown, 0.20 green, 0.16 orange, 0.13 red and 0.14 yellow in a sampl..

  Utility maximization is characterized by the tangency rule

Charlie has utility function U(x,y)=24x^1/2+y. If he maximizes her utility, what is the amount of good y that he consumes, when price of x is 4, price of y is 1, and income is 50 (in this case utility maximization is characterized by the tangency rul..

  Lease payment in the standard lease

A local car dealer is advertising a standard 24-month lease of $1,150 per month for its sports car. The standard lease requires a down payment of $4,500, plus a $1,000 refundable initial deposit now. The first lease payment is due at the end of month..

  Government expenditure multiplier

Suppose that investment decline by 40 units to a level of 60. What will be the new level of equilibrium income.

  About the the discount rate

Which of the following is true of the discount rate?

  When the price of good changes the substitution effect

When the price of a good changes, the substitution effect occurs because:

  What is the invisible hand principle

What is the invisible hand principle? Does it indicate that self-interested behavior within markets will result in actions that are beneficial to others? What conditions are necessary for the invisible hand to work well? Why are those conditions impo..

  State difference between the classical and keynesian schools

State the essential difference between the classical and Keynesian schools of thought. If you were a public policymaker and received conflicting advice from a classical and a Keynesian economist, how would you choose? Explain.

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