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apple321 apple321
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2 years ago

The figure below shows an individual firm in a perfectly competitive industry in which all firms have joined together to form a cartel. This firm has agreed to restrict its output to 600 units per day and raise its price to $5 per unit.

Short description: A graph plots quantity in units per day against dollars per unit. Long description: The horizontal axis represents the quantity in units per day. The vertical axis represents dollars per unit. The graph plots two curves. The curve, ATC passes through the following points: (600, 4), (1000, 3), and (1200, 3.25). The curve, MC passes through the following points: (1000, 3) and (1200, 5). The two curves intersect at (1000, 3).

FIGURE 10-8
Refer to Figure 10-8. Suppose this firm, and this firm only, decided to cheat on its agreement with the cartel and produce an output level that satisfies its own profit-maximizing condition. What profits would this firm earn under this circumstance?



▸ $3000 per day

▸ $3600 per day

▸ $2100 per day

▸ $2400 per day

▸ $6000 per day
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
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KimbletonKimbleton
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Anonymous
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A year ago Edited: A year ago
Help! The answer is missing an explanation...
Post Merge: A year ago

If a monopolist is practicing perfect price​ discrimination, then
Question content area bottom
Part 1
A.
the monopolist is not maximizing profit.
B.
producer surplus is zero.
C.
costs are lower than for the non​-price​-discriminating monopolist.
D.
consumer surplus is zero.
E.
demand must be inelastic.
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