.\'Il T-Mobile 6:20 PM Touch to return to call 17:40 2 a. Each firm in a cartel

Question

.'Il T-Mobile 6:20 PM Touch to return to call 17:40 2 a. Each firm in a cartel has an incentive to break its word and produce more than the agreed quantity False True 2 b. Price of Quastity ef $10 200 500 100 Demand Schedule for Gadgets) table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost and fixed cost of sO. The table shows the market demand schedule for gadgets Assuming that Margaret and Ray split the production of output evenly, if industry output is 700, each firm's profts will be than they would be at the output of s00, which maximizes industry profit $150 more 5300 more $150 less S200 les 2c. Examine the figure Monopolistic in the figure is producing at the output level that maximizes profits (minimizes losses). The shaded rectangie depicts the level of loss profit. variable cost. fixed cost. 2 d. Scenario: Payoff Hatrix for Firms X and Y The following payoff matrix depicts the profits for firms X and Y, which are trying to decide whether to choose a high or low price in their competitive strategy with each other. They are the only two firms in this oligopolistic

Explanation / Answer

1) when firm produces 250 each then profit=1250 each

When firm produces 350 each then profit=2100/2=1050 each

Thus ans is B. Each firm profit would have been 200 more

2)Fix cost=(ATC-AVC)*Q=shaded area

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