Back to Assignment Attempts Keep the Highest/3 5. Cartel versus competitive outcome A few rival firms provide airline services in the United States. Because the firms must have the appropriate technology, equipment, pilots, security, and customer service to maintain their businesses, there are economies of scale. The market for airplane travel is best characterized as The following graph shows the market demand conditions and long-run costs of production for individual firms in the market for airplane travel. Assume all airlines produce a ce an identical product an ct and face identical cost curves. Suppose all airlines successfully coordinate supply decisions to maximize profit as a cartel. Place the green point (triangle symbol) on the graph to indicate the quantity of tickets per year the cartel will supply and the price it will charge. Dashed drop lines will automatically extend to both axes. Cartel Outcome Competitive Outcome ollars per ticket) 8 400 300
Back to Assignment Attempts Keep the Highest/3 5. Cartel versus competitive outcome A few rival firms provide airline services in the United States. Because the firms must have the appropriate technology, equipment, pilots, security, and customer service to maintain their businesses, there are economies of scale. The market for airplane travel is best characterized as The following graph shows the market demand conditions and long-run costs of production for individual firms in the market for airplane travel. Assume all airlines produce a ce an identical product an ct and face identical cost curves. Suppose all airlines successfully coordinate supply decisions to maximize profit as a cartel. Place the green point (triangle symbol) on the graph to indicate the quantity of tickets per year the cartel will supply and the price it will charge. Dashed drop lines will automatically extend to both axes. Cartel Outcome Competitive Outcome ollars per ticket) 8 400 300
Chapter1: Making Economics Decisions
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5. Cartel versus competitive outcome
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A few rival firms provide airline services in the United States. Because the firms must have the appropriate technology, equipment, pilots, security, and
customer service to maintain their businesses, there are economies of scale. The market for airplane travel best characterized as
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Study Tools
The following graph shows the market demand conditions and long-run costs of production for individual firms in the market for airplane travel.
Assume all airlines produce an identical product and face identical cost curves.
Suppose all airlines successfully coordinate supply decisions to maximize profit as a cartel.
Study Tools for Principles of
Economics
Place the green point (triangle symbol) on the graph to indicate the quantity of tickets per year the cartel will supply and the price it will charge.
Dashed drop lines will automatically extend to both axes.
? Help
(?)
Give Feedback
500
▲
Cartel Outcome
400
300
Competitive Outcome
A
Type here to search
O
jo
D
48°F Clear
K
Q Search this course
X
3:36 PM
6/15/2022
x
:
A-Z
N
"
bange
A+
O
Transcribed Image Text:N Course: EC 201 Microeconomic P X
MindTap - Cengage Learning X
Search results for 'A few rival firm X +
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→ с ✰ng.cengage.com/static/nb/ui/evo/index.html?deploymentId=56960519240215212983351261543&eISBN=9781305648173&id=1488825772&snapshotld=294... Q
• Kathryn v
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Place the green point (triangle symbol) on the graph to indicate the quantity of tickets per year the cartel will supply and the price it will charge.
Dashed drop lines will automatically extend to both axes.
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500
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A
Cartel Outcome
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400
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Competitive Outcome
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1000
Now suppose that some cartel members
▼ their prices in order to increase market share.
Use the purple point (diamond symbol) on the prior graph to indicate the price and quantity that will prevail in the long run if all firms in the oligopoly
compete with one another.
E
A
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PRICE (Dollars per ticket)
300
200
100
0
MR
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Demand
200
400
600
800
QUANTITY (Thousands of tickets per year)
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