The market demand curve is p 86-q where q is the total

Reference no: EM13604355

Firm A and B make up a cartel that monopolizes the market for a scarce natural resource. The firms marginal costs are MCa=6+2Qa and MCb=18=Qb. The firms seek to maximize the cartels total profit.

a) the firm have decided to limit their total output to Q+ 18. What output should firm produce to archieve this level of output a minimum total cost? What is each firms marginal cost?

b) The market demand curve is P= 86-Q where Q is the total output of the cartel. Show that the cartel can increase its profits by expanding its total output.( hint compare MR to MC at Q=18)

c) Find the cartel optimal output and optimal price. ( hint : At the optimum, MR= MCa=MCb)

Reference no: EM13604355

Questions Cloud

Trying to get the priceearning ratio for the coca-cola : trying to get the priceearning ratio for the coca-cola company for the last 5 years starting in 2011.

Determine the motor torque in foot-pounds required to : a servomotor is connected to a forearm axis drive shaft without any reduction drive components. the maximum weight of

Find and interpret the mean of the sample find and : oil field pipes are internally coated in order to prevent corrosion. researchers investigated the influence that

On october 1 2010 menke co purchased to hold to maturity : on october 1 2010 menke co. purchased to hold to maturity 200 1000 9 bonds for 208000. an additional 6000 was paid for

The market demand curve is p 86-q where q is the total : firm a and b make up a cartel that monopolizes the market for a scarce natural resource. the firms marginal costs are

Use the five step p value approach to test the hypothesis : the us department of education reports that 46 of full-time college students are employed while attending college. a

Estimate the allowance for doubtful accounts required at : the following transactions occurred over the months of september to december 2011 at nicoles getaway spa ngs.september

The telephone company wants to investigate the desirability : the telephone company wants to investigate the desirability of beginning a marketing campaign that would offer

When target corporation became retailer store who develop : when target corporation became retailer store ? who develop the concept of discount retailer ? how long the company has

User Account

All Pages