The table below shows the market demand for eggs in the economy of Robin a 8...

 

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The table below shows the market demand for eggs in the economy of Robin a 8 3 8 2 2 35 30 25 20 15 10 5 Q 150 200 250 300 350 400 450 The revenue maximizing output in the market is Drake Suppose that there are only two firms, Drake and Grayson, producing eggs and they decide to act as a cartel and share the market equally (e, each firm has exactly one-half of total sales). A. in the payoff matrix below, show in cell A the amount of total revenue each will receive if they both stick to the agreement. Remember that they are sharing the market. Keep Agreement Break Agreement eggs. At this level of output, the market price would be $ Keep Agreement Cell A E. The outcome in Cell A is the Cell C F. The outcome in Cell D is the Grayson Break Agreement Cell B B. Suppose that Grayson believes that Orake will honour the agreement by maintaining his present output. However, Grayson decides to cheat and increase his output by 40%. What will be Drake and Grayson's total revenue each? Complete cell B. Hint: consider how the action by Grayson will affect the market by looking at the market table above. Cell D C. Now, assume that the positions are reversed and that Drake decides to cheat while assuming that Grayson will stick to the agreement. Complete cell C. D. Finally, in cell D, show the total revenue of Grayson and Drake that would result if they both cheat. joint outcome for the two firms. joint outcome for the two firms. The table below shows the market demand for eggs in the economy of Robin a 8 3 8 2 2 35 30 25 20 15 10 5 Q 150 200 250 300 350 400 450 The revenue maximizing output in the market is Drake Suppose that there are only two firms, Drake and Grayson, producing eggs and they decide to act as a cartel and share the market equally (e, each firm has exactly one-half of total sales). A. in the payoff matrix below, show in cell A the amount of total revenue each will receive if they both stick to the agreement. Remember that they are sharing the market. Keep Agreement Break Agreement eggs. At this level of output, the market price would be $ Keep Agreement Cell A E. The outcome in Cell A is the Cell C F. The outcome in Cell D is the Grayson Break Agreement Cell B B. Suppose that Grayson believes that Orake will honour the agreement by maintaining his present output. However, Grayson decides to cheat and increase his output by 40%. What will be Drake and Grayson's total revenue each? Complete cell B. Hint: consider how the action by Grayson will affect the market by looking at the market table above. Cell D C. Now, assume that the positions are reversed and that Drake decides to cheat while assuming that Grayson will stick to the agreement. Complete cell C. D. Finally, in cell D, show the total revenue of Grayson and Drake that would result if they both cheat. joint outcome for the two firms. joint outcome for the two firms.

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A The revenue maximizing output in the market is 250 eggs At ... View the full answer