Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In France, the market for bottled water is controlled by two large firms, Perrier and Evian. Each firm has a fixed cost of $1,000,000 and a constant marginal cost of $2 per liter of bottled water. The following table gives the market demand schedule for bottled water in France.
Price of bottled water per liter Quantity of bottled water demanded (millions of liters)
10 0
9 1
8 2
7 3
6 4
5 5
4 6
3 7
2 8
1 9
a. Suppose the two firms form a cartel and act as a monopolist. Calculate marginal revenue for the cartel. What will the monopoly price and output be? Assuming the output is divided evenly, how much each firm will produce and what will each firm's profit be?
b. Now suppose Perrier decides to increase production by 1 million liters more than what it currently produces. Evian doesn't change its production. What will the new market price and output be? What is Perrier's profit now? Evian's?
c. What if Perrier increases production by 3 million more liters from the level you found in part (a)? Evian doesn't change its production. What will happen to each firm's profit?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The Australian government administers two programs that affect the market for cigarettes
How many tickets to sell to maximize total welfare.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd