What are the quantity of rides

Assignment Help Econometrics

Reference no: EM131297850

Isolated Island has two taxi companies, one owned by Ann and the other owned by Zack. Figure 1 shows the market demand curve for taxi rides, D, and the average total cost curve of one of the firms, ATC.

If Ann and Zack form a cartel and produce the same quantity of rides as would be produced in monopoly, what are the quantity of rides, the price of a ride, and the economic profit of Ann and Zack? Would Ann and Zack have an incentive to break the cartel agreement and cut their price? Explain why or why not.

Reference no: EM131297850

Questions Cloud

Assuming dividends are paid at the end of the year : She purchased Gatorade stock two years ago at $59.57 per share. She earned a dividend of $1.20 and the stock was worth $89.15 at the end of the first year. Gatorade increased the dividend to $1.50 the following year, but the stock price dropped due t..

What is the current yield for bond : Bond P is a premium bond with a 10 percent coupon. Bond D is a 5 percent coupon bond currently selling at a discount. Both bonds make annual payments, have a YTM of 7 percent, and have seven years to maturity. What is the current yield for Bond P and..

What data would you want to find out : What data would you want to find out? How would you move forward. To be successful in this assignment, I want to see that you have thoughtfully considered an approach for this special internal consulting situation.

What is dec gain or loss on this contract : Suppose DEC buys a Swiss franc futures contract (size is SFr 125,000) at a price of $0.83. If the spot rate for the Swiss franc at the date of settlement is SFr 1 = $0.8250, what is DEC's gain or loss on this contract

What are the quantity of rides : Would Ann and Zack have an incentive to break the cartel agreement and cut their price? Explain why or why not.

Does the firm empower its workers : Does the firm appear to recognize that its employees are the key to its success? Does the firm empower its workers? Does it encourage teamwork? Provide details?

Construct a selection criteria matrix similar to the example : Construct a selection criteria matrix similar to the example with at least 6 or more criteria in the first column to effectively rate your 3 vendors or suppliers.

Discuss international strategy : Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

Summarize white-collar crimes and criminal tools : Determine one (1) additional theory that a researcher could use to explain the cause of digital-crime and non-digital crime. Include one (1) example for each crime in question to support your response.Analyze the types of digital criminals and hack..

User Account

All Pages