Believe a. is MC=13+.5Q, b. is P1=$40 P2=$55, and c. is P=$40 and Q=30.Need help on d through g.
Homework 31. Consider the world oil market, in which a cartel (OPEC) and a competitive fringe (rest ofthe world) are operating. Suppose that global oil demand and the supply of thecompetitive fringe are given by the following functions:Qw = 70 – P,Qf = -40 + P.Furthermore, suppose that the cartel is comprised of two countries, and let each country’smarginal cost function be as follows:MC, = 13 + Q1,MCz = 13 + Q2-a. Derive the marginal cost function (MC.) of the cartel.(2 pt)b. Calculate the price at which the competitive fringe would be driven out of themarket (P1) and the price at which the cartel would be driven out of the market(Pz).(2 pt)c. Due to the presence of the competitive fringe in the market, there will be a kinkpoint in the demand curve of the cartel. Calculate the price (P) and quantity (@) atwhich this kink occurs.(2 pt)d. Now suppose the inverse demand for the cartel’s output has the followingformula:Po = 55 – 0.5Q to left of the kink point quantity (i.e., Q. < Q),P. = 70 – Q to the right of the kink point quantity (i.e., Q. > Q).Also, suppose the corresponding marginal revenue function of the cartel has thefollowing formula:MR. = 55 – Q to the left of the kink point quantity,MR. = 70 – 20 to the right of the kink point quantity.Use this information to calculate the cartel’s output (Q.) and the price charged perunit of output (P.).(2 pt)C.Calculate the output of the fringe (Q,) at this price.(1 pt)f. Calculate the total output (Q. + Q, ) supplied in the global oil market.(1 pt)g. Calculate the output of each of the two members of the cartel: Q1 and Q2. (2 pt)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more