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Welcome to the Cartel!

Welcome to the Cartel!. An Exercise in Economic Analysis. TR = $13,500. TR = $11,000. Small Firms:. Economic Profit = $4*150 = $600. Small Firms:. Economic Profit = $3*200 = $600. Big Firms:. Economic Profit = $4*350 = $1400. Big Firms:. Economic Profit = $2*400 = $800.

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Welcome to the Cartel!

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  1. Welcome to the Cartel! An Exercise in Economic Analysis

  2. TR = $13,500 TR = $11,000

  3. Small Firms: Economic Profit = $4*150 = $600

  4. Small Firms: Economic Profit = $3*200 = $600

  5. Big Firms: Economic Profit = $4*350 = $1400

  6. Big Firms: Economic Profit = $2*400 = $800 Industry Economic Profit = $3400

  7. Cartel Results – Blue(sec. #8) Price = $xx Quantity = xxx Total Profit = $xxx

  8. Cartel Results – Green(sec. #8) Price = $xx Quantity = xxx Total Profit = $xx

  9. Cartel Results – Yellow(sec. #8) Price = $xx Quantity = xxx Total Profit = $xx

  10. A Better Way . . . • SuperTech produces 250 • Tiger produces 225 • Vulture produces 425 each . . . • Have Zynadine shut down!!!! • Price = $15; ATC = $5 • Total Econ profit = $9000. . . split up in some way each finds equitable

  11. Welcome to the Cartel! An Exercise in Economic Analysis

  12. A Better Way . . .

  13. Cartel Results – Blue(sec. #9) Price = $xx Quantity = xxx Total Profit = $xxxx

  14. Cartel Results – Green(sec. #9) Price = $xx Quantity = xxx Total Profit = $xxx

  15. Cartel Results – Yellow(sec. #9) Price = $xx Quantity = xxx Total Profit = $xxx

  16. Cartel Results – Blue(sec. #10) Price = $xx Quantity = xxx Total Profit = $xxxx

  17. Cartel Results – Green(sec. #10) Price = $xx Quantity = xxx Total Profit = $xx

  18. Cartel Results – Yellow(sec. #10) Price = $xx Quantity = xxx Total Profit = $xx

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