Microeconomics (Christopher T.S. Ragan) (z-lib.org)

bushel, there is a shortage of apples because the quantity demanded exceeds the quantity supplied. This is a situation of excess ...

Notice in all three examples that there are firms outside the cartel. There are many oil producers (including all those in Canad ...

There is neither a shortage nor a surplus of apples. There are no unsatisfied buyers to bid the price up, nor are there unsatisf ...

Figure 10-4 The Effect of Cartelizing a Competitive Industry thereby raising price and increasing profits. This is shown in Figu ...

variable) on the vertical axis. This is “backward” to what is usually done in mathematics. The rational explanation of what is n ...

Problems That Cartels Face Cartels encounter two characteristic problems. The first is ensuring that members follow the behaviou ...

Short-Run Equilibrium in a Competitive Market Changes in any of the variables, other than price, that influence quantity demande ...

Figure 10-5 A Cartel Member’s Incentive to Cheat the competitive level. All the firms will then be back to their competitive pos ...

Figure 3-8 Shifts in Demand and Supply Curves change to be studied. We then determine the new equilibrium position and compare i ...

where its marginal cost is equal to the price set by the cartel. This would allow the firm to earn much larger profits, shown by ...

demand shifts the demand curve to taking the new equilibrium to Price rises to and quantity rises to Starting at a decrease in d ...

Another example of a cartel’s instability involves the world coffee market. In 2000, the Association of Coffee Producing Countri ...

price. This rise in price causes a larger quantity to be supplied, with the result that at the new equilibrium more is exchanged ...

quota and the quotas are allocated among existing producers, entry is successfully prevented. This approach is used to limit the ...

By using the tools we have learned in this chapter, we can link many real- world events that cause demand or supply curves to sh ...

economists use game theory, a tool that we introduce and discuss in detail in Chapter 11 . ...

4 The term static is used because we are not concerned with the actual path by which the market goes from the first equilibrium ...

10.3 Price Discrimination So far in this chapter, we have assumed that the monopolist charges the same price for every unit of i ...

A Numerical Example Changes in market equilibrium can also be examined by using a simple algebraic model. For example, consider ...

prices that vary with the time of day or the season of the year may not represent price discrimination because the same product ...