Assume That Demand for a Product That Is Produced at Zero

question 52

Short Answer

Assume that demand for a product that is produced at zero marginal cost is reflected in the table below.
$$\begin{array} { | c | c | } \hline \text { Quantity } & \text { Price } \\\hline 0 & \text { R36 } \\\hline 200 & \text { R33 } \\\hline 400 & \text { R30 } \\\hline 600 & \text { R27 } \\\hline 800 & \text { R24 } \\\hline 1000 & \text { R21 } \\\hline 1200 & \text { R18 } \\\hline 1400 & \text { R15 } \\\hline 1600 & \text { R12 } \\\hline 1800 & \text { R9 } \\\hline 2000 & \text { R } 6 \\\hline 2200 & \text { R3 } \\\hline 2400 & \text { R } 0 \\\hline\end{array}$$
a. What is the profit-maximising level of production for a group of oligopolistic firms that operate as a cartel?
b. Assume that this market is characterised by a duopoly in which collusive agreements are illegal. What market price and quantity will be associated with a Nash equilibrium?

Understand the influence of the age of information on attitudes.

Analyze and reflect on the formation and evolution of personal attitudes.

Develop strategies for attitude improvement in response to personal and professional challenges.

Understand the key financial metrics used to assess a company's efficiency and ability to convert inventory and receivables into cash.

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Definitions:

Fertility Levels

The mean number of offspring a woman has during her life in a certain group of people.

Replacement Level Fertility

The fertility rate at which each new generation precisely replaces itself, without increasing or decreasing the population size.

Stability Level

The degree to which a system is resistant to, or able to absorb, changes and disturbances, maintaining its original state.

Modernization Level

a measure of how advanced a society is in terms of technological development, social structure, and economic practices.