Homework Answers
From the given data,
Share of each firm = 500/7 = 71.43 million units
Initial revenue for each firm = 71.43 * 5 = $357.15 million
Increased revenue of the cheating firm= 71.43 + 50 = 121.43 million units
Total revenue of the firm that cheated = 121.43 * 4.50 = $546.44 million
Increase in revenue for the cheating firm = 546.43 - 357.15 = $189.28 million
Total Initial Industry revenue = 500 * 5 = $ 2500 million
Decreased total Industry revenue after cheating = 550 * 4.5 = $2475 million
Amount of decreases in total revenue = 2500 - 2475 = $25 million
Amount of decreases in revenue of each firm = 25/7 = $3.57 million
Net revenue gain for the cheating firm = 189.28 - 3.57 = $185.71 or, $186 million
[Please rate the answer if it helps, thank you]
Add Answer to:
Assume that a seven-firm cartel supplies 500 million units of Whatailsya energy drink at a price...
Assume that an eight-firm cartel supplies 500 million units of Whatailsya energy drink at a price...
Assume that an eight-firm cartel supplies 500 million units of Whatailsya energy drink at a price of $5.00 per unit. Each firm supplies an equal share of the cartel's output. One firm decides to cheat and supplies 50 million extra units, causing the price of Whatailsya to decrease to $4.50 per unit. Assuming that the loss due to the fall in price is evenly spread across all firms in the cartel, what is the net gain for the cheating firm,...
Alcoa High price Low price Kaiser High price A $400, $500 B $175, $575 Low price...
Alcoa High price Low price Kaiser High price A $400, $500 B $175, $575 Low price C $525, $200 D $273, $250 Payoffs in millions of dollars of profits per month. Alcoa and Kaiser, duopolists in the market for primary aluminum ingot, choose prices of their 500 foot rolls of sheet aluminum on the first day of the month. The following payoff table shows their monthly payoffs resulting from the pricing decisions they can make. Is the pricing decision facing...
Your perfectly competitive firm produces 1 million units of output. Your price is $40 per unit...
Your perfectly competitive firm produces 1 million units of output. Your price is $40 per unit and your average total cost is $30 per unit. Your economic profit equals ( in millions)
The table shows the demand schedule for a particular product. Price Quantity Demanded (Units) (Dollars per...
The table shows the demand schedule for a particular product. Price Quantity Demanded (Units) (Dollars per unit) 0 16 14 2 12 3 10 4 8 5 6 6 4 7 2 8 0 Refer to Table 17-3. Suppose the market for this product is served by two firms that have formed a cartel. If the marginal cost of production is $4 and each firm incurs a fixed cost of S6, the combined profit of the cartel will be $32...
QUESTION 3 MC ATC Price (per unit) в с Market Price PEMR Quantity (units per week)...
QUESTION 3 MC ATC Price (per unit) в с Market Price PEMR Quantity (units per week) Figure 23.6 Given the current market price, we expect to see Firms exit from the industry, driving up the market price. Firms exit from the industry, driving down the market price. No change in the number of firms in the industry and no change in the market price. Firms enter the industry, driving down the market price. Click Save and submit to save and...
a region that must reduce emissions, three polluters currently emit 30 units of emissions. The three...
a region that must reduce emissions, three polluters currently emit 30 units of emissions. The three firms have the following marginal abatement cost (MAC) functions that describe how marginal costs vary with the amount of emissions each firm reduces Firm Emissions Firm MAC $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 Firm 2 MAC $1.00 $%2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Firm 3 MAC Reduction $%2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00...
An externality arises when a firm or person engages in an activity that affects the wellbeing...
An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Shift one...
Rewrite this paragraph in another wording 1. Executive Summary: Majid Al Futtaim is an Emirati firm...
Rewrite this paragraph in another wording 1. Executive Summary: Majid Al Futtaim is an Emirati firm located in Dubai, it’s held and managed purchasing markets and many malls, retail, and entertainment enterprises in MENA, with works in 13 nations. The organization was founded by Majid Al Futtaim in 1992, it manages three main working of companies controlled: Properties, Retail, and Ventures branches, from 2015 the organization start working in 13 nations: like United Arab Emirates, Egypt, Saudi Arabia, Jordan, Pakistan,...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
The table shows the demand schedule for a particular product. Price Quantity Demanded (Units) (Dollars per unit) 0 16 14 2 12 3 10 4 8 5 6 6 4 7 2 8 0 Refer to Table 17-3. Suppose the market for this product is served by two firms that have formed a cartel. If the marginal cost of production is $4 and each firm incurs a fixed cost of S6, the combined profit of the cartel will be $32...
QUESTION 3 MC ATC Price (per unit) в с Market Price PEMR Quantity (units per week) Figure 23.6 Given the current market price, we expect to see Firms exit from the industry, driving up the market price. Firms exit from the industry, driving down the market price. No change in the number of firms in the industry and no change in the market price. Firms enter the industry, driving down the market price. Click Save and submit to save and...
a region that must reduce emissions, three polluters currently emit 30 units of emissions. The three firms have the following marginal abatement cost (MAC) functions that describe how marginal costs vary with the amount of emissions each firm reduces Firm Emissions Firm MAC $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 $5.50 Firm 2 MAC $1.00 $%2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 Firm 3 MAC Reduction $%2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $9.00 $10.00 $11.00...
An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Shift one...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Most questions answered within 3 hours.
-
A travelling salesman sells milkshake mixing machines and on
average sells 8.9 machines per month. He...
asked 5 minutes ago -
what's the danger in the fact that the market value of a stock
is based on...
asked 19 minutes ago -
Describe how do you feel about the post below and
why?
Listening to the podcast reaffirmed...
asked 28 minutes ago -
To start an avalanche on a mountain slope, an artillery shell is
fired with an initial...
asked 41 minutes ago -
The population of bacteria in a culture can be modeled by P left
parenthesis t right...
asked 45 minutes ago -
Which factors can prevent permanent fixation of an allele (i.e.
maintain genetic diversity)? Hint: You're going...
asked 47 minutes ago -
Compare a two-year bond with two successive one-year bonds in a
situation in which an investor...
asked 1 hour ago -
Chapter 6
Search the internet and find a newspaper example of a price
ceiling, price floor...
asked 1 hour ago -
Sarah Bates, calendar year taxpayer, started a new business on
October 8th. A number of start-up...
asked 1 hour ago -
You and your friends are playing in the swimming pool with a
40-cm-diameter beach ball. How...
asked 1 hour ago -
Patterson Development sometimes sells property on an installment
basis. In those cases, Patterson reports income in...
asked 1 hour ago -
please help with these two example, i want to double check my
work. thanks
1.
sum:=0...
asked 1 hour ago
> Thank you for the step by step instructions. They were very helpful. I was able to the apply it to an 8 firm cartel.
Jennifer Devonish Tue, Nov 2, 2021 9:04 AM