SlideShare a Scribd company logo
Principles of Microeconomics Problem Set 7
Due 10/28
1. For each of the following forms of oligopoly, do the firms
compete in price or quantity?
Do they produce the competitive output, the monopoly output,
or in between? Explain
the source of the firms’ market power, if it exists. (15 points)
a. Cournot Competition
b. Homogenous Product Bertrand
c. Hotelling
d. Cartel
e. Kinked Demand
2. In a cartel, a group of firms comes together to agree on a
price. Do they name a price
above, below, or equal to the monopoly price? Why? Given
that, why does it make
sense for cartels to be illegal while other forms of oligopoly
competition are allowed? (5
points).
Principles of Microeconomics Problem Set 7 Due 1028 1.docx

More Related Content

More from ChantellPantoja184

Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docxProblem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
ChantellPantoja184
 
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docxProblem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
ChantellPantoja184
 
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docxPROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
ChantellPantoja184
 
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docxProblem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
ChantellPantoja184
 
Problem 12-9AYour answer is partially correct.  Try again..docx
Problem 12-9AYour answer is partially correct.  Try again..docxProblem 12-9AYour answer is partially correct.  Try again..docx
Problem 12-9AYour answer is partially correct.  Try again..docx
ChantellPantoja184
 
Problem 1123456Xf122437455763715813910106Name DateTopic.docx
Problem 1123456Xf122437455763715813910106Name DateTopic.docxProblem 1123456Xf122437455763715813910106Name DateTopic.docx
Problem 1123456Xf122437455763715813910106Name DateTopic.docx
ChantellPantoja184
 
Problem 1. For the truss and loading shown below, calculate th.docx
Problem 1. For the truss and loading shown below, calculate th.docxProblem 1. For the truss and loading shown below, calculate th.docx
Problem 1. For the truss and loading shown below, calculate th.docx
ChantellPantoja184
 
Problem 1 (30 marks)Review enough information about .docx
Problem 1 (30 marks)Review enough information about .docxProblem 1 (30 marks)Review enough information about .docx
Problem 1 (30 marks)Review enough information about .docx
ChantellPantoja184
 
Problem 1 (10 points) Note that an eigenvector cannot be zero.docx
Problem 1 (10 points) Note that an eigenvector cannot be zero.docxProblem 1 (10 points) Note that an eigenvector cannot be zero.docx
Problem 1 (10 points) Note that an eigenvector cannot be zero.docx
ChantellPantoja184
 
Probation and Parole 3Running head Probation and Parole.docx
Probation and Parole 3Running head Probation and Parole.docxProbation and Parole 3Running head Probation and Parole.docx
Probation and Parole 3Running head Probation and Parole.docx
ChantellPantoja184
 
Problem 1(a) Complete the following ANOVA table based on 20 obs.docx
Problem 1(a) Complete the following ANOVA table based on 20 obs.docxProblem 1(a) Complete the following ANOVA table based on 20 obs.docx
Problem 1(a) Complete the following ANOVA table based on 20 obs.docx
ChantellPantoja184
 
Probe 140 SPrecipitation in inchesTemperature in F.docx
Probe 140 SPrecipitation in inchesTemperature in F.docxProbe 140 SPrecipitation in inchesTemperature in F.docx
Probe 140 SPrecipitation in inchesTemperature in F.docx
ChantellPantoja184
 
Problem #1 JET Copies Case ProblemRead the JET Copies C.docx
Problem #1 JET Copies Case ProblemRead the JET Copies C.docxProblem #1 JET Copies Case ProblemRead the JET Copies C.docx
Problem #1 JET Copies Case ProblemRead the JET Copies C.docx
ChantellPantoja184
 
PROBLEM 1 Lovin’ the Fast Food The following article was writt.docx
PROBLEM 1  Lovin’ the Fast Food The following article was writt.docxPROBLEM 1  Lovin’ the Fast Food The following article was writt.docx
PROBLEM 1 Lovin’ the Fast Food The following article was writt.docx
ChantellPantoja184
 
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docxProblem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
ChantellPantoja184
 
Pro.docx
Pro.docxPro.docx
Probability Analysis .docx
Probability Analysis                                              .docxProbability Analysis                                              .docx
Probability Analysis .docx
ChantellPantoja184
 
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docxPrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
ChantellPantoja184
 
Privacy and security of information Consider this scenario.docx
Privacy and security of information Consider this scenario.docxPrivacy and security of information Consider this scenario.docx
Privacy and security of information Consider this scenario.docx
ChantellPantoja184
 
PRlNTED BY [email protected] Printing is for personal. privat.docx
PRlNTED BY [email protected] Printing is for personal. privat.docxPRlNTED BY [email protected] Printing is for personal. privat.docx
PRlNTED BY [email protected] Printing is for personal. privat.docx
ChantellPantoja184
 

More from ChantellPantoja184 (20)

Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docxProblem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
Problem 1Pro Forma Income Statement and Balance SheetBelow is the .docx
 
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docxProblem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
Problem 2-1PROBLEM 2-1Solution Legend= Value given in problemGiven.docx
 
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docxPROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
PROBLEM 14-6AProblem 14-6A Norwoods Borrowings1. Total amount of .docx
 
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docxProblem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
Problem 13-3AThe stockholders’ equity accounts of Ashley Corpo.docx
 
Problem 12-9AYour answer is partially correct.  Try again..docx
Problem 12-9AYour answer is partially correct.  Try again..docxProblem 12-9AYour answer is partially correct.  Try again..docx
Problem 12-9AYour answer is partially correct.  Try again..docx
 
Problem 1123456Xf122437455763715813910106Name DateTopic.docx
Problem 1123456Xf122437455763715813910106Name DateTopic.docxProblem 1123456Xf122437455763715813910106Name DateTopic.docx
Problem 1123456Xf122437455763715813910106Name DateTopic.docx
 
Problem 1. For the truss and loading shown below, calculate th.docx
Problem 1. For the truss and loading shown below, calculate th.docxProblem 1. For the truss and loading shown below, calculate th.docx
Problem 1. For the truss and loading shown below, calculate th.docx
 
Problem 1 (30 marks)Review enough information about .docx
Problem 1 (30 marks)Review enough information about .docxProblem 1 (30 marks)Review enough information about .docx
Problem 1 (30 marks)Review enough information about .docx
 
Problem 1 (10 points) Note that an eigenvector cannot be zero.docx
Problem 1 (10 points) Note that an eigenvector cannot be zero.docxProblem 1 (10 points) Note that an eigenvector cannot be zero.docx
Problem 1 (10 points) Note that an eigenvector cannot be zero.docx
 
Probation and Parole 3Running head Probation and Parole.docx
Probation and Parole 3Running head Probation and Parole.docxProbation and Parole 3Running head Probation and Parole.docx
Probation and Parole 3Running head Probation and Parole.docx
 
Problem 1(a) Complete the following ANOVA table based on 20 obs.docx
Problem 1(a) Complete the following ANOVA table based on 20 obs.docxProblem 1(a) Complete the following ANOVA table based on 20 obs.docx
Problem 1(a) Complete the following ANOVA table based on 20 obs.docx
 
Probe 140 SPrecipitation in inchesTemperature in F.docx
Probe 140 SPrecipitation in inchesTemperature in F.docxProbe 140 SPrecipitation in inchesTemperature in F.docx
Probe 140 SPrecipitation in inchesTemperature in F.docx
 
Problem #1 JET Copies Case ProblemRead the JET Copies C.docx
Problem #1 JET Copies Case ProblemRead the JET Copies C.docxProblem #1 JET Copies Case ProblemRead the JET Copies C.docx
Problem #1 JET Copies Case ProblemRead the JET Copies C.docx
 
PROBLEM 1 Lovin’ the Fast Food The following article was writt.docx
PROBLEM 1  Lovin’ the Fast Food The following article was writt.docxPROBLEM 1  Lovin’ the Fast Food The following article was writt.docx
PROBLEM 1 Lovin’ the Fast Food The following article was writt.docx
 
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docxProblem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
Problem 1 (ch 23)Victoria Falls Flour Mill Company started many ye.docx
 
Pro.docx
Pro.docxPro.docx
Pro.docx
 
Probability Analysis .docx
Probability Analysis                                              .docxProbability Analysis                                              .docx
Probability Analysis .docx
 
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docxPrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
PrizeExample.DS_Store__MACOSXPrizeExample._.DS_StoreP.docx
 
Privacy and security of information Consider this scenario.docx
Privacy and security of information Consider this scenario.docxPrivacy and security of information Consider this scenario.docx
Privacy and security of information Consider this scenario.docx
 
PRlNTED BY [email protected] Printing is for personal. privat.docx
PRlNTED BY [email protected] Printing is for personal. privat.docxPRlNTED BY [email protected] Printing is for personal. privat.docx
PRlNTED BY [email protected] Printing is for personal. privat.docx
 

Recently uploaded

Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
TechSoup
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
RidwanHassanYusuf
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
haiqairshad
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
Nguyen Thanh Tu Collection
 
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
National Information Standards Organization (NISO)
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
TechSoup
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
nitinpv4ai
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
deepaannamalai16
 
skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)
Mohammad Al-Dhahabi
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
MysoreMuleSoftMeetup
 
How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17
Celine George
 
SWOT analysis in the project Keeping the Memory @live.pptx
SWOT analysis in the project Keeping the Memory @live.pptxSWOT analysis in the project Keeping the Memory @live.pptx
SWOT analysis in the project Keeping the Memory @live.pptx
zuzanka
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
danielkiash986
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
Celine George
 
Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.
IsmaelVazquez38
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
Jyoti Chand
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
siemaillard
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Denish Jangid
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
Krassimira Luka
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
HajraNaeem15
 

Recently uploaded (20)

Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
Elevate Your Nonprofit's Online Presence_ A Guide to Effective SEO Strategies...
 
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptxBIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
BIOLOGY NATIONAL EXAMINATION COUNCIL (NECO) 2024 PRACTICAL MANUAL.pptx
 
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skillsspot a liar (Haiqa 146).pptx Technical writhing and presentation skills
spot a liar (Haiqa 146).pptx Technical writhing and presentation skills
 
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
BÀI TẬP DẠY THÊM TIẾNG ANH LỚP 7 CẢ NĂM FRIENDS PLUS SÁCH CHÂN TRỜI SÁNG TẠO ...
 
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
Jemison, MacLaughlin, and Majumder "Broadening Pathways for Editors and Authors"
 
Leveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit InnovationLeveraging Generative AI to Drive Nonprofit Innovation
Leveraging Generative AI to Drive Nonprofit Innovation
 
Skimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S EliotSkimbleshanks-The-Railway-Cat by T S Eliot
Skimbleshanks-The-Railway-Cat by T S Eliot
 
HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.HYPERTENSION - SLIDE SHARE PRESENTATION.
HYPERTENSION - SLIDE SHARE PRESENTATION.
 
skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)skeleton System.pdf (skeleton system wow)
skeleton System.pdf (skeleton system wow)
 
Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47Mule event processing models | MuleSoft Mysore Meetup #47
Mule event processing models | MuleSoft Mysore Meetup #47
 
How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17How Barcodes Can Be Leveraged Within Odoo 17
How Barcodes Can Be Leveraged Within Odoo 17
 
SWOT analysis in the project Keeping the Memory @live.pptx
SWOT analysis in the project Keeping the Memory @live.pptxSWOT analysis in the project Keeping the Memory @live.pptx
SWOT analysis in the project Keeping the Memory @live.pptx
 
Pharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brubPharmaceutics Pharmaceuticals best of brub
Pharmaceutics Pharmaceuticals best of brub
 
How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17How to Predict Vendor Bill Product in Odoo 17
How to Predict Vendor Bill Product in Odoo 17
 
Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.Bossa N’ Roll Records by Ismael Vazquez.
Bossa N’ Roll Records by Ismael Vazquez.
 
Wound healing PPT
Wound healing PPTWound healing PPT
Wound healing PPT
 
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptxPrésentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
Présentationvvvvvvvvvvvvvvvvvvvvvvvvvvvv2.pptx
 
Chapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptxChapter wise All Notes of First year Basic Civil Engineering.pptx
Chapter wise All Notes of First year Basic Civil Engineering.pptx
 
Temple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation resultsTemple of Asclepius in Thrace. Excavation results
Temple of Asclepius in Thrace. Excavation results
 
How to deliver Powerpoint Presentations.pptx
How to deliver Powerpoint  Presentations.pptxHow to deliver Powerpoint  Presentations.pptx
How to deliver Powerpoint Presentations.pptx
 

Principles of Microeconomics Problem Set 7 Due 1028 1.docx

  • 1. Principles of Microeconomics Problem Set 7 Due 10/28 1. For each of the following forms of oligopoly, do the firms compete in price or quantity? Do they produce the competitive output, the monopoly output, or in between? Explain the source of the firms’ market power, if it exists. (15 points) a. Cournot Competition b. Homogenous Product Bertrand c. Hotelling d. Cartel e. Kinked Demand 2. In a cartel, a group of firms comes together to agree on a price. Do they name a price above, below, or equal to the monopoly price? Why? Given that, why does it make sense for cartels to be illegal while other forms of oligopoly competition are allowed? (5 points).