Is there any dwl associated with the cartel

Assignment Help Econometrics

Reference no: EM13209980

The market for qbits is initially competitive and the market demand is: P = 400 - 0.4QD . The combined marginal costs of the firms in the qbit industry are:MC =50 + 0.6Q.

a. Draw the demand, and marginal cost curves. Calculate and show how much these firms will sell and what they will charge.

b. Now a bunch of other firms buy out all of the qbit producers and create a cartel (their combined MC doesn't change). How much will the cartel produce? What price will they charge? (Draw any necessary new curves on your graph above).

c. Is there any DWL associated with the cartel? If so, how much?

d. Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?

Reference no: EM13209980

Questions Cloud

Explain deionized water to the titrating flask : Does adding boiled, deionized water to the titrating flask to wash the wall of the Erlenmeyer flask and the buret tip affect the Ksp

Determine the average price of tennis rackets : Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States. Wilpen estimates the U.S. demand for its tennis balls by using the following linear specification: Q = a + bP + cM + dPR From Regr..

Explain a compound with molecular formula : A compound with molecular formula C5H10O2 has the following 1H NMR spectrum: 1.15 (t, 3H), 1.25 (t, 3H), 2.33 (q, 2H), 4.13 (q, 2H). Draw its structure. Hint: How many rings and ? bonds does C5H10O2 have?

Define titrant hcl instead of methyl orange : If phenolphthalein is used as an indicator for titrating Ca(OH)2 with titrant HCl instead of methyl orange, which is the recommended indicatory

Is there any dwl associated with the cartel : The market for qbits is initially competitive and the market demand is: P = 400 - 0.4QD . The combined marginal costs of the firms in the qbit industry are:MC =50 + 0.6Q. Calculate and show how much these firms will sell and what they will charge.

Explain alkyl halides reacts most rapidly via sn1 solvolysis : which of the following alkyl halides reacts most rapidly via SN1 solvolysis reaction in hot methanol? A) 1-iodo-1-methylcyclohexane

Explain octahedral transition metal ions : Octahedral transition metal ions of the 4th period can display both high spin and low spin structures, while the ions of the 5th and 6th periods only show low spin structures.

How to catch up to the living standard of the leader country : Assume that a "leader country" has real GDP per capita of $40,000, whereas a "follower country" has real GDP per capita of $20,000. Next suppose that the growth of real GDP per capita falls to zero percent in the leader country and rises to 7 perc..

Explain volume change upon mixing sufficient ethanol : Calculate the volume change upon mixing sufficient ethanol with 8.85mol of water to give this concentration. The densities of water

User Account

All Pages