Linear Algebra Assignment for Economics Class

Qd = 30,000 – 5000P

Qs = 10,000P

a. Calculate the perfectly competitive industry equilibrium price and output.

b. Assume that the firms in this industry organized into a cartel. Calculate the industry output and price.

c. Compare your answers for items a and b. Briefly describe the effect that organizing into a cartel had on price and output.

When one auto maker offers a rebate, others will follow. What two oligopoly models might explain this behavior? Briefly explain the models and how they apply to this situation.  Your response must be a minimum of 200 words.

Miller Company managers realize that Jim's Corporation may attempt to enter their market.

a. What steps might they take to dissuade Jim's Corporation from entering?

b. What factors are likely to determine whether they will succeed?

c. What actions taken by Miller in the past might play an important role in influencing whether Jim's Corporation enters or not?

Your response must be a minimum of 200 words.