2/3/2021
EPPD1013 MICROECONOMICS 1 SET 2| 1/20202021-Choo Wei Sheng
Student: Choo Wei Sheng
Instructor: Riayati Ahmad
Date: 2/3/21
Course: EPPD1013 MICROECONOMICS 1 SET 2|
1/20202021
Book: Perloff: Microeconomics, 8e, Global Edition
Time: 7:49 PM
2. The Federation of Quebec Maple Syrup Producers supplies
over three-quarters of the world's maple syrup (see the
Application "Cheating on the Maple Syrup Cartel."). Under
government rules, the member firms jointly market their
syrup through the federation, which sets quotas on how
much each firm can produce. Show this cartel's price
determination process. Show how much profit a firm would
gain by cheating: by producing more than the cartel's quota.
p, $ per unit
Assume the first figure at right illustrates the market for
maple syrup, where D indicates market demand and S
market supply.
S
1.) Using the point drawing tool, indicate the price set and
the total quantity produced by the cartel when acting like a
monopoly. Label this point 'em .'
2.) Using the point drawing tool, indicate the price and
quantity at the competitive equilibrium. Label this point 'ec .'
MR
D
q, Units of output
Carefully follow the instructions above, and only draw the
required objects.
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