dolution

dolution.

[7.] Suppose that the marginal cost of mining gold is constant at $300 per ounce and the demand schedule is as follows:

PRICE (per oz.) QUANTITY (per oz.)
$1000 1000
$900 2000
$800 3000
$700 4000
$600 5000
$500 6000
$400 7000
$300 8000

a.) If the number of supplies is large, what would be the price and quantity?

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

b.) If there is only one supplier, what would be the price and quantity?

c.) If there are only two suppliers and they form a cartel, what would be the price and quantity?

d.) Suppose that one of the two cartel memebers in part (c) decides to increase its production by 1,000 ounces while the other member keeps its production constant. What will happen to the revenues of both firms?

dolution

 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"