Quiz 3

Microeconomics

ECO 100 – BBA 1 D

18/12/2020

5 Marks Total

1) Please fill out the table below, given that the Marginal Cost = 20. Identify the competitive
outcome and the monopoly outcome. Then supposing that a duopoly exists, identify the
collusion outcome.

Price Quantity Revenue Cost Profit

0 100 0 2000 -2000
5 90 450 1800 -1350
10 80 800 1600 -800
15 70 1050 1400 -350
20 60 1200 1200 0 break even
point
25 50 1250 1000 250
30 40 1200 800 400
35 30 1050 600 450
40 20 800 400 400
45 10 450 200 250
50 0 0 0 0
Compatitve outcomes:

Where,p=mc

At p=20=mc

P=60

Profit=0

Monopoly outcomes:

Profit is maximum

P=35 q=30

Profit 450

As the given condition doubly exist, conclusion is where the two fires consistently agree upon the quality
to be produced and the price to be changed