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Author Question: Under the cartel model, each firm produces where a. marginal cost equals marginal revenue. b. ... (Read 249 times)

HCHenry

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on: Jul 1, 2018
Under the cartel model, each firm produces where
 a. marginal cost equals marginal revenue.
  b. price equals marginal cost.
  c. the average cost curve is at a minimum.
  d. price exceeds marginal cost by the greatest amount.

Question 2

In the cartel model
 a. firms believe that price increases result in a very elastic demand, while price decreases result in an inelastic demand for their products.
  b. each firm acts as a price taker.
  c. one dominant firm takes the reactions of all other firms into account in its output and pricing decisions.
  d. firms coordinate their decisions to act as a multiplant monopoly.


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chem1s3

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Reply #1 on: Jul 1, 2018
Answer to Question 1

a

Answer to Question 2

d


HCHenry

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Reply #2 on: Jul 1, 2018
Thank you


chem1s3

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Reply #3 on: Jul 1, 2018
No problemo


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