Assume that only 2 firms are in the market and they collude and act like a monopoly.
P = 32 − 2Q
MC = 16
(a) What quantity will the cartel supply and what price will consumers pay?
(b) What is the profit will both firms get if they decide to split production evenly?
(c) Suppose firm B decides to cheat and increase production by one unit. How much profit will firm B make?
(d) Does firm B have an incentive to cheat?
(e) Will the cartel be stable? why or why not?

Answers

Answer 1

In a collusive agreement where two firms act like a monopoly, the price equation is P = 32 - 2Q, and the marginal cost is MC = 16. The cartel supplies 8 units and incurs a loss of $132.

(a) The cartel will supply a quantity of 8 units (4 units per firm), and consumers will pay a price of $16 per unit.

(b) If the firms decide to split production evenly, each firm will supply 4 units. To determine the profit, we need to calculate the total revenue and total cost. Total revenue is given by price multiplied by quantity, which is (32 - 2(4)) * 4 = $96. Total cost is the sum of the individual costs, which is (16 * 4) + (16 * 4) = $128. Therefore, both firms will incur a loss of $32 each.

(c) If firm B decides to cheat and increase production by one unit, the new quantity supplied by firm B will be 5 units, while firm A will continue to supply 4 units. The new price will be determined by the new quantity, so we have P = 32 - 2(5) = $22. Firm B's profit can be calculated by multiplying the new price by the quantity supplied, which is (22 * 5) = $110.

(d) Firm B has an incentive to cheat because by increasing its production, it can capture additional market share and earn higher profits. In this case, firm B's profit increases from $32 (by sticking to the cartel agreement) to $110 (by cheating and increasing production by one unit).

(e) The cartel is not likely to be stable in the long run. Firm B's incentive to cheat demonstrates a lack of trust and cooperation among the firms. When one firm has an opportunity to increase its profit by deviating from the agreed-upon output, it creates a temptation for others to follow suit. This behaviour can lead to a breakdown of the cartel as firms pursue their self-interests and engage in price competition, ultimately reducing their joint profits.

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Related Questions

factorise the following3x^2-18 +24​

Answers

Answer:

it's 3(x^2-2) bcoz -18-24= -6 and 3 is divisible into 6 twice

What is a good practice before taking out a student loan?
A. Calculate the simple interest on the principal of the loan.
OB. Calculate the annual balloon payment to make sure you will be
able to afford it.
C. Calculate the total amount of compounded interest to see if you
are getting a good deal.
O D. Calculate the monthly payment to make sure you will be able to
afford it.

Answers

A typical good practice before taking out a student loan are:

calculate the annual balloon payment to make sure you will be able to afford it.calculate the monthly payment to make sure you will be able to afford it.

What is a student loan?

This is a kind of financial aid in form of money borrowed from the government or a private lender in order to pay for college.

The loan given to the student is expected to be paid back later with the interest that builds up over time and such money gotten are usually used for tuition, room and board, books or other fees.

Hence, the typical good practice before taking out a student loan are calculate the annual balloon payment to make sure you will be able to afford it and the monthly payment to make sure you will be able to afford it.

Therefore, the Option B & D is correct.

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Answer: Calculate the monthly payment to make sure you will be able to afford it

Microsoft® Publisher does which of the following?
Receives email messages
Keeps daily activity records
Creates items using page layout skills
Sends email messages

Answers

Answer:

Creates items using page layout skills

Explanation:

I work in school with publisher and this was on a test of mine. :)

The Microsoft Publisher is software that creates items using page layout skills.

Microsoft Publisher

It is an application that helps the user to create documents for use professionally. Examples of these are:

NewsletterPostcardsFlyersInvitationsBrochures

To do this the user needs to first select one of the built-in templates in Microsoft Publisher and then the user could add text and pictures to it before printing the file.

Hence, Microsoft Publisher is not for sending or receiving messages nor does it help to keep daily records. Instead, its purpose is to create items using page layout skills.

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Do businesses receive a water grant?​

Answers

Answer:

Energy and Water funding is a crucial part of the UK government’s carbon emissions responsibility. Finding new ways of funding lower emission energy systems for business is one of the ways that the UK are pushing forward.

Water Capital Grant Scheme

The Water Capital Grant Scheme provides funding of £10 Million to applicants from the farming community, from the land management community and from the agricultural community to deal with water management which is a key issue in the industry. Those running businesses in these areas are able to avail of this scheme and create in-roads in water management.

This is designed to provide support to water management, and will provide £10,000 in a water capital grant to help carry out works which will improve water management and quality. The real focal point of the grant is to improve waterlines around agricultural industry and to reduce the impact of agriculture on the water quality of the surrounding area. The funding is for new projects which will help to move toward this goal, and applicants are able to apply for this through Natural England.

The Water Capital Grants scheme works in accordance with the woodland capital grant scheme, which creates the first of the new Stewardship Scheme from the government. This scheme will be committing £900 million to working with natural resources and protecting and benefiting the resources in the environment. Applicants to this scheme can avail of grant funding to really bring water usage in their business to a better level.

There are a whole range of funding options and projects which are eligible. Some of these are:

installing biobeds

preventing livestock access to watercourses by erecting watercourse fencing

providing drinking troughs as an alternative to watercourse drinking for livestock

relocation of sheep dips and pens

roofing of sprayer washdown areas, manure storage areas, livestock gathering areas, slurry stores and silage stores

Funding will be competitive with grants awarded to applications that best meet the scheme’s priorities and have the greatest environmental benefit.

The new water grants build on the successful Catchment sensitive farming initiative, which between 2013 and 2016 helped over 6,200 farms across the country benefit from a total of £72 million in grant funding to improve water quality and reduce pollution from agricultural activity. The water capital grants scheme under Countryside Stewardship will be managed and delivered through Catchment Sensitive Farming in 2018.

Work funded by the Catchment Sensitive Farming grant scheme over recent years has already brought efficiencies for thousands of farmers and has enhanced local environments throughout England by improving water quality.

Explanation:

Jamal and keisha are considering entering into an agreement to trade tasks. how can specialization of labor benefit jamal and keisha? check all that apply. jamal can specialize in washing cars, because he has the comparative advantage. keisha can specialize in washing cars, because she has the comparative advantage. specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days. specialization allows them to collectively mow 12 more lawns and wash 27 more cars every three days. specialization allows them to earn more money.

Answers

The ways in which specialization of labor can benefit them would be: Keisha can specialize in washing cars because she has a comparative advantage.

What is Specialization of Labor?

Specialization of Labor is a division of labor that involves breaking down activities into a simpler set of tasks so that each participant participates hand in hand and no individual is being overworked, and to promote efficiency.

From the given information, the correct options are:

Keisha can specialize in washing cars because she has a comparative advantage.Specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days.Specialization allows them to earn more money.

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Answer:

B C E

Explanation:

A binding price ceiling is designed to:Question 2 options:a) increase efficiency.b) prevent shortages.c) keep prices below the equilibrium level.d) increase the quality of the good.

Answers

A binding price ceiling is designed to c) keep prices below the equilibrium level.

What is a binding price?

A binding price ceiling is a term used to refer to a case whereby government sets a required price on a good or goods.

This price is usually set at a price below equilibrium.

Producers are are usually at the beneficial sides as a result of the binding price floor incase the price is higher than equilibrium price.

while Consumers are always worse off since they must pay more for a lower quantity.

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What are the goals of government regulation?
low unemployment, price stability,
economic growth
O high unemployment, price instability,
economic growth
low unemployment, price stability,
economic steadiness
O high unemployment, price instability,
economic steadiness

Answers

Answer: A)  low unemployment, price stability, economic growth

Explanation: Government regulation attempts to promote growth, full employment, and price stability for the well-being of the citizens

The goals of an ideal government while making regulations shall include the following purposes,

low unemployment, price stability,economic growth.

Therefore, the option A holds true.

What is the significance of government goals?

The goals of a government can be referred to or considered as the qualitative and quantitative targets set by the government in order to foresee better conditions in the future. These are backed by economic plans and regulations.

For a developing or a developed government, the goals must be economically based while being regulated. These goals must include reduced poverty and unemployment in order to achieve a healthy economic growth.

Therefore, the option A holds true and states regarding the significance of the goals of a government.

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the minimum number of people needed to support service is

Answers

The minimum number of people needed to support a service depends on various factors, including the nature and complexity of the service, its scope, and the resources required for its provision.

However, at a basic level, a service can typically be supported by at least two individuals. One person can be responsible for delivering the service while the other manages administrative tasks and provides support as needed.

This setup ensures that there is backup and assistance available, allowing for smooth operation and continuity of the service. In more complex scenarios, additional personnel may be required, such as technicians, customer service representatives, or specialized professionals.

The specific staffing needs will vary depending on the type of service, its demands, and the organization's capacity to allocate resources for its support.

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After reading the material on credibility, identify two people: one who is credible and one who is not. why they have or lack credibility. select people you know and give them both names factitious or real.

Answers

Credible person: John Smith, an experienced doctor with a reputable medical degree and a track record of successful treatments.

Non-credible person: Sarah Johnson, an unlicensed self-proclaimed nutritionist with no formal education or evidence-based practices.

Credible person: John Smith. He has credibility because he is a renowned expert in his field with years of experience, recognized qualifications, and a track record of reliable and accurate information.

Non-credible person: Jane Doe. She lacks credibility because she has no verifiable credentials or expertise in the subject matter, and her statements often contradict well-established facts without providing evidence or logical reasoning.

John Smith is considered credible due to his extensive knowledge and expertise in his field. He has built a reputation for being reliable and trustworthy through years of experience, recognized qualifications, and a consistent record of providing accurate information. People rely on his expertise and trust his judgment.

On the other hand, Jane Doe lacks credibility because she lacks the necessary qualifications, expertise, and experience in the subject matter. Her statements often conflict with well-established facts and lack supporting evidence or logical reasoning. As a result, people are hesitant to trust her information or rely on her insights.

Credibility is essential as it allows individuals to assess the reliability and trustworthiness of the information or opinions being presented. It is important to critically evaluate the credibility of sources and consider factors such as expertise, qualifications, reputation, and track record to make informed judgments about the information we encounter.

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Which of the following are characteristics of a scarce resource?
Choose 1 answer:
Choose 1 answer:

(Choice A)
A
The supply of the resource exceeds the demand of the resource.

(Choice B)
B
There is a fixed quantity of the resource available but no demand for it.

(Choice C)
C
There is a demand for that resource with limited supply.

(Choice D)
D
There is limited supply of a resource with no demand for that resource.

(Choice E)
E
The resource has unlimited supply and limited demand.

Answers

There is a demand for that resource with limited supply  are characteristics of a scarce resource. When the demand for a natural resource exceeds the supply, resource scarcity results, which causes the stock of those resources to decrease.

As a result of rising costs that make the demand resource less accessible to those who are least well-off, this might result in unsustainable supply   growth and an increase in inequality. When there aren't enough resources to meet everyone's needs, there is scarce resource. Oil is among the most well-known instances of how resource scarcity affects the United States. Local gas prices will surely climb when oil prices around the world do.

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credit cards are an example of a(n) ________blank that is marketed globally.

Answers

Credit cards are an example of a financial instrument that is marketed globally.

Credit cards have become an essential tool in personal finance management, allowing people to purchase goods and services without the need for immediate payment.

Credit cards are issued by banks and financial institutions and allow cardholders to borrow funds to make purchases.

They also offer a range of benefits such as cash back rewards, points for travel and entertainment, and purchase protection.

Credit cards are marketed globally, with many financial institutions offering cards with varying terms, interest rates, and rewards programs to attract and retain customers.

Credit cards are a convenient and widely accepted payment method that provides users with greater purchasing power.

However, it is essential to use credit cards responsibly and to pay off balances in full each month to avoid high-interest charges and debt accumulation.

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What is not a criterion when evaluating financial service providers?
A. financial service provider's history
B. benefits or lack thereof
C. past and current employees
D. emerging technologies

Answers

That which is not a criterion when evaluating financial service providers is this: C. past and current employees.

What are the criteria for evaluating financial service providers?

To successfully evaluate the qualification of a financial service provider, the customer must be able to look at their present and past history. They should consider their ability to incorporate emerging technologies into their businesses.

It is not really the business of the consumer to dig out the past and current employees of the business. He should be interested in other relevant factors like the above.

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20. One way the federal government can control inflation is to increase
A) the money supply.
B) public spending.
C) the tax rate.
D) bank regulation

Answers

One way the federal government can control inflation is to increase public spending.

Therefore, Option B is the correct option.

What is Inflation?

In the field of economics, inflation is the broad term for a rise in the cost of goods and services across an economy. Each unit of currency may purchase fewer products and services as the general price level rises, hence inflation is associated with a decline in the purchasing power of money.

In conclusion, inflation is the term used to describe a long-term, widespread increase in the cost of goods and services throughout the economy, which reduces both consumer and company purchasing power. In other words, a dollar (or whatever currency you choose to pay with) will not buy as much today as it did yesterday.

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The sides of a triangle measure 4, 6, and 7. If the shortest side of a similar triangle is 12, what is the perimeter of the larger triangle?

Answers

Answer:

51

Explanation:

12 divided by 4 is 3 so we'll multiply all of the smaller triangle by 3.

4 x 3 = 12

6 x 3 = 18

7 x 3 = 21

12 + 18 + 21 = 51

what is the role of doctors in our society?​

Answers

Their role is to serve the society as others do basically contribution but their actual role is to help others through their medical knowledge.

How do Karissa and Marta differ in their reactions to the increase in the minimum wage?

Answers

The way that Karissa and Marta differ in their reactions to the increase in the minimum wage is that Karissa is happy to be able to save some money while Marta worries about either increasing her prices, or reducing her employees to meet the minimum wage.

How do employers and employees react to minimum wage increase?

Employees like Karissa are generally happy when there is an increase in the minimum wage because it means that they get access to more money for both spending and saving. In Karissa's case, she is happy that she will be able to have more of an earning to be able to save some more money.

Employers on the other hand, are generally conflicted about increases in the minimum wage. It means that they have to make a choice; they can either increase their prices to be able to make more money and pay the new minimum wage, or they would have to let some employees go and then use the savings on the laid - off employees to pay the new minimum wage. This is what Marta is suffering.

Full question:
Read the case study on Karissa and Martha and their thoughts on the increase in the minimum wage. Karissa is an employee while Martha is her employer.

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whatever type of audience you face, your presentation should focus on audience _______ to help the people present determine what's in it for them.

Answers

When giving a presentation, it's critical to tailor your message to your intended audience. You can accomplish this by determining the audience's interests and needs ahead of time and tailoring your presentation to meet them. Your presentation should concentrate on audience benefits so that people can determine what they'll get out of it, regardless of the audience type.

To begin, consider your audience's needs. Is it possible that they are looking for particular details on the topic at hand? Do they require some kind of education or guidance? Are they more concerned with the specifics of how something works than with the benefits it provides? You should always attempt to provide answers to the audience's questions. If you're presenting a product, for example, you should focus on what distinguishes it from other products and how it will help the audience.

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The phrase “assests get trapped” was used in the movie. What does that mean?

Answers

Answer:

The phrase “assests get trapped” was used in the movie. What does that mean? In farming the largest percentage of expenses are out front/at the beginning – they must be incurred without having any idea what the market price will be. Farmers have good years, but must save for the bad years because they will happen too

Explanation:

One way a partnership differs from a sole proprietorship is that it

Answers

Answer:

The most obvious difference between partnership and sole proprietorship is the number of owners the business has. "Sole" means one or only, and a sole proprietorship has only one owner: you. Conversely, it takes two or more to form a partnership, so this type of entity has at least two owners.

Answer:has owners with many different skill sets

Calculate how many hours his non-salary employees will take to create a large order of 1,000 shoes. What kind of budget would Jose create?

Answers

This question is incomplete but will answer this based on what I guess you're asking.

Answer and Explanation:

Assume there are 10 employees for the small factory that makes shoes.

Let's assume each non-salary employee spends 30 minutes on each pair of shoes before it finishes, and charges $10 per hour.

1000 pairs of shoes would take 1000×0.5×10= 5000 hours(208 days and a few hours)

Total budget for non-salary employees= 5000 hrs×$10= $50000

Therefore Jose would need a $50000 budget given the variables above.

Toby Mcguire just won a lottery, and he is considering purchasing an investment that promises to give him $350 at the end of each month for 24 months, then $420 at the end of each month for 36 months, and then $425 at the end of each month for 36 months. If the first payment is due at the end of the first month and interest is 8.0% compounded annually over the term of the annuity, how much should Toby pay for this investment now?

Answers

Toby should pay $15,227.79 for the investment now. This reduces the present value to $15,227.79, which is the amount Toby should pay for the investment now.

To calculate the present value of the investment, we need to find the present value of each cash flow and then sum them up. Using the formula for present value of an annuity, we calculate the present value of the first series of cash flows (24 months of $350) as $6,662.92. Similarly, the present value of the second series (36 months of $420) is $9,008.61, and the present value of the third series (36 months of $425) is $3,556.26.

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Amelie received an email that claimed to be from a Nigerian prince who needed help setting up
a bank account but would pay thousands of dollars if Amelie helped him. What kind of email is
this?
a) Ad
b) Spam
c) Junk
d) Support

Answers

Answer:

Explanation:

Spam

PROFIT/LOSS = TOTAL REVENUE - TOTAL COSTS
lan set up a taxi firm one month ago. He has calculated that his total monthly revenue was £2400.
He has added his costs together for the first month and they came to £2800. However, he spent
£1000 on a car for the business that he will not need to spend again.
1) What was his profit/loss for the month?
For the month it was €
1
2) Next month, what will his profit/loss be?
3) List 2 things that could happen that would increase his costs?

Answers

Answer:

What's the question? :) I'm an econ major btw.  

Explanation:

Presented below are the components in determining cost of goods sold.
Determine the missing amounts.
Beginning Inventory Purchases Costs of Goods available for sale Ending Inventory Cost of Goods sold
$84,100 $101,500 $112,000
$53,100 $116,000 $37,000 $115,000 $156,000 $30,500

Answers

The missing amounts are: Ending Inventory = $30,500 and Cost of Goods Sold = $155,100.

The cost of goods sold formula determines the cost of goods sold, and includes the beginning inventory, the cost of goods purchased, and the cost of goods available for sale.

To determine the missing amounts, we use the formula Cost of goods available for sale - ending inventory = cost of goods sold.

Beginning Inventory = $84,100

Purchases = $101,500

Cost of goods available for sale = $84,100 + $101,500

= $185,600

Ending Inventory = $30,500

Cost of goods sold = $185,600 - $30,500 = $155,100

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In the past, your boss assessed your performance based on the actual return on the portfolio of U.S. stocks that you manage. For each quarter in which your portfolio generated an annualized return of at least 20 percent, you received a bonus. Now your boss wants you to develop a method for measuring your performance from managing the portfolio. Offer a method that accurately measures your performance.

Answers

A suitable method for measuring performance from managing the portfolio could involve a combination of risk-adjusted returns and benchmark comparisons. This approach takes into account both the absolute returns achieved and the level of risk taken. By assessing performance relative to an appropriate benchmark and incorporating risk metrics, a more comprehensive evaluation of portfolio management can be obtained.

To accurately measure performance, it is important to consider risk-adjusted returns. One commonly used measure is the Sharpe ratio, which calculates the excess return of a portfolio relative to a risk-free rate, divided by the portfolio's standard deviation. The Sharpe ratio provides a metric that considers both returns and risk, allowing for a fair assessment of performance.

Additionally, it is essential to compare the portfolio's performance to a relevant benchmark, such as a market index like the S&P 500. This enables a comparison of the portfolio's returns against the overall market performance, providing insights into the manager's ability to outperform or underperform the market. By combining risk-adjusted returns and benchmark comparisons, a comprehensive evaluation of portfolio management performance can be achieved.

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How should and should accountants adapt to the digital age?

Answers

Accountants can become more adaptable by keeping up with evolving trends, planning ahead and thinking about the future. Individuals might feel stressed when faced with unexpected difficulties, but having the ability to adapt and determine alternative options helps the best accountants cope with change.

Which of the following is not characteristic of a corporation?
a. The financial loss that a stockholder may suffer from owning stock in a public company is limited.
b. Cash dividends paid by a corporation are deductible as expenses by the corporation.
c. A corporation can own property in its name.
d. Corporations are required to file federal income tax returns.

Answers

Cash dividends paid by a corporation are deductible as expenses by the corporation. This statement is not characteristic of a corporation.

In general, corporations are not allowed to deduct cash dividends paid to shareholders as expenses on their tax returns.

Dividends are typically distributed from the after-tax profits of a corporation and are taxed separately at the individual shareholder level. The corporation itself is not able to claim a deduction for dividend payments. The other options listed—limited financial loss for stockholders, corporations owning property in their name, and filing federal income tax returns—are characteristics commonly associated with corporations.

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According to the law of demand, what will happen as the price of a good or service decreases?
A. The demand for that good or service will decrease.
B. The demand for that good or service will increase.
C. The quantity demanded for that good or service will decrease.
D. The quantity demanded for that good or service will increase.

Answers

B. The demand for that good or service will increase.

Jacob works part-time as a cashier at a drug store. His gross pay for the year
was $8,000. Based on his income level, the federal tax rate he'll need to pay is
10%. For his state taxes, Jacob will need to pay 5% and the FICA rate is
7.65%. What is Jacob's net pay for the year?

A. $1,812
B. $7,200
C. $6,188
D. $6,988

Answers

Answer:

Option C

Explanation:

Gross Salary of Jacob  = $ 8000

Federal tax paid by him = 10% of $8000 = $800

State tax = 5% of $8000 = $400

FICA rate = 7.65% of $8000 = $612

Net Pay of Jacob = $ 8000 - $800 -$400-$612

= $6188

Hence, option C is correct

What does making a good decision mean?? How can I make a good decision?

Answers

Answer:

A good decision is one that is made deliberately and thoughtfully, considers and includes all relevant factors, is consistent with the individual’s philosophy and values, and can be explained clearly to significant others.

Ways to make good decision:

Set Aside Time to Reflect on Your MistakesStop Thinking About the ProblemFrame Your Problems In a Different WayIdentify the Risks You TakeTake Note of Your OverconfidenceTalk to Yourself Like a Trusted FriendLabel Your EmotionsAcknowledge Your ShortcutsConsider the Opposite
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