2. Below is the cost schedule of a typical producer of volume-40 developer, a product used by professors who wish to
Posted: Wed Jul 06, 2022 6:34 pm
2. Below is the cost schedule of a typicalproducer of volume-40 developer, a product used by professors whowish to change hair color quickly and with minimal mess. Thequantity is listed in bottles and the price is listed in dollars.There is no fixed cost. Note that this is a market demand, not afirm's individual demand schedule, so the market price isdetermined by total quantity, not what an individual firmproduces.
Quantity Demanded
Price
Total Revenue
Marginal Revenue
Total Cost
Total Profit
0
5
0
xxxxxxxxxxxxxx
0
0
10
4.5
45
4.5
50
-5
20
4
80
3.5
100
-20
30
3.5
105
2.5
150
-45
40
3
120
1.5
200
-80
50
2.5
125
0.5
250
-125
60
2
120
-0.5
300
-180
70
1.5
105
-1.5
350
-245
80
1
80
-2.5
400
-320
a.Fill in the Total Profit column. (This may requiredetermining other quantities, but you will earn credit for TotalProfit being correct.)
b. If the market for developer is perfectly competitive,what quantity will be produced? What price will be charged? Whatwill the firm’s profit be? Write a sentence explaining how youdetermined each of those three answers.
c. If the market for developer is a monopoly, whatquantity will be produced? What price will be charged? What willthe firm’s profit be? Write a sentence explaining how youdetermined each of those three answers.
d. Using your previous answer, assume that the“monopoly” is really two firms (Darling Industries and EdwardsLimited) colluding as a duopoly. They agree to each produce halfthe quantity in your answer to c and each earn their ownprofit (which will be half of the profit you listed in c). However,Darling Industries cheats and produces an extra 10 units (whileEdwards keeps its word). What quantity will be produced by eachfirm? What price will be charged at this new total quantity? Whatis each firm's profit? Remember that the price is determined by thetotal quantity, not by what an individual firmproduces.
e. Is it rational for Darling Industries to cheat inthis case? Explain how you know using a completesentence.
f. Using complete sentences, explain which marketstructure leads to the best outcome for the consumer and whichleads to the best outcome for the producer.
I was wondering if someone could help me withc,d,e,f
Quantity Demanded
Price
Total Revenue
Marginal Revenue
Total Cost
Total Profit
0
5
0
xxxxxxxxxxxxxx
0
0
10
4.5
45
4.5
50
-5
20
4
80
3.5
100
-20
30
3.5
105
2.5
150
-45
40
3
120
1.5
200
-80
50
2.5
125
0.5
250
-125
60
2
120
-0.5
300
-180
70
1.5
105
-1.5
350
-245
80
1
80
-2.5
400
-320
a.Fill in the Total Profit column. (This may requiredetermining other quantities, but you will earn credit for TotalProfit being correct.)
b. If the market for developer is perfectly competitive,what quantity will be produced? What price will be charged? Whatwill the firm’s profit be? Write a sentence explaining how youdetermined each of those three answers.
c. If the market for developer is a monopoly, whatquantity will be produced? What price will be charged? What willthe firm’s profit be? Write a sentence explaining how youdetermined each of those three answers.
d. Using your previous answer, assume that the“monopoly” is really two firms (Darling Industries and EdwardsLimited) colluding as a duopoly. They agree to each produce halfthe quantity in your answer to c and each earn their ownprofit (which will be half of the profit you listed in c). However,Darling Industries cheats and produces an extra 10 units (whileEdwards keeps its word). What quantity will be produced by eachfirm? What price will be charged at this new total quantity? Whatis each firm's profit? Remember that the price is determined by thetotal quantity, not by what an individual firmproduces.
e. Is it rational for Darling Industries to cheat inthis case? Explain how you know using a completesentence.
f. Using complete sentences, explain which marketstructure leads to the best outcome for the consumer and whichleads to the best outcome for the producer.
I was wondering if someone could help me withc,d,e,f