The last question , the first part answer choices are increase or decrease to .3

Question

The last question , the first part answer choices are increase or decrease to .30 , .70 , .50 , .90 then it says Macy profit is now 72,000, 48,000, 120,000 or 64,000 per day and mccovery profit is 64,000, 80,000, 72,000 or 48,000 and the last answer choices are decrease or increase Mays and McCovey arc beer-brewing companies that operate in a duopoly (two-firm oligopoly). The daily marginal cost (MC) of producing a can of beer is constant and Is S0.20 per can. Assume that neither firm had any startup costs. That is, marginal cost equals average total cost (ATC) for each firm. Suppose that Mays and McCovey form a cartel, and the firms divide the output evenly. Place the black point (X symbol) on the graph that Mows to indicate the profit-maximizing price and combined quantity output if Mays and McCovey choose to work together. Drop lines will extend to both axes automatically. When they act as a profit-maximizing cartel, each company will produce cans per day and charge per can. Given this information, each firm earns a daily economic profit of, so the total industry economic profit in the beer market is per day. Oligopolists often behave uncooperatively and act in their own self-interest, even though this decreases total economic profit m the market. Again, assume the two companies form a cartel and decide to work together Both Anns agree to produce the same quantity. Consider the profit-maximizing level of output for each firm that Mays decides to break the collusion and increase to output by 50% of Mays profit-maximizing output, whereas McCovey continues to produce the same amount as in the collusive agreement. Mays's deviation from the collusive agreement causes the pence of a can of beer to to per can. Mays's profit is now_ per day, whereas McCovey's profit is now per da, Therefore, you can conclude that total industry economic profit when Mays increases its output beyond the collusive quantity.

Explanation / Answer

1) 320000

2) $ 0.2

3) $ 128000

4)

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