Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competitor for price fixing. In your market, firms only set prices, not total quantities to sell. From previous experience, you know your competitor has a marginal cost of $. Further, your marginal costs are $. The previous cartel price was $10.00, when you and your competitor were price fixing. What price level do you now choose to maximize profits?
A. $10.05
B. $6.50
C. $10.00
D. $6.49
E. $6.48
F. $6.43
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competitor for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Identify which principle applies to each scenario by placing the appropriate label next to each scenario.
Answers (1)
A company mines 360,000 tons of coal per year in a rural county. The coal is worth $65 per ton. The average price for a 2,000-square-foot house with three bedrooms more than 20 km away from the mining site in this county is $220,000.
Answers (1)
The partnership is liable for torts committed by any partner of the firm while engaged in partnership business under the doctrine of:
Answers (1)
A business owner ihas offered free lunches if employees work through their lunch hour and has provided a living wage base salary and job security to his employees.
Answers (1)
Factors that can effect prices could include advances in technology, changes in prices of raw materials or new government taxes. a. True b. False
Answers (1)
New Questions in Business
What is the type of loan obtained through credit card with extremely high rates of interest?
Answers (1)
This is a function of money in which any item - such as currency - that is widely accepted in the exchange of other goods or services.
Answers (1)
Describe how the mobile device has become a prominent way for companies to interact with their clients. In what ways do you see this evolving more over the next 5 years?
Answers (1)
Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus $1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but the actual level of activity was 25 vehicles.
Answers (1)
In need of extra cash, Troy and Lily decide to withdraw $2 comma 100 from their traditional IRA. They are both 40 years old. They are in a 35 % marginal tax bracket. What will be the tax consequences of this withdrawal?
Answers (1)