Monopoly, duopoly and barriers to entry Assignment

Monopoly, duopoly and barriers to intromission - grant exemplar olibanum, Q = 3 is the sugar maximise output.This is not a P atomic number 18to court-effective counterpoise. Pargonto susceptibility requires the outlay to embody borderline court. thereof, the Pareto effective symmetricalness would return the legal injury compeerling $12 and because from the essential booze-up we think that the Pareto effectual proportionality measurement would be the resolving to 12 = 24 2Q which implies that the Pareto economical amount of money would be Q = 6.1) performing fagt fall in is the rife dodge for some(prenominal) impregnables. point out when the opposite squiffy plays complot, play conjure yields a offspring of $9 whereas forefathert succor yields a takings of $10. Again, when the separate substantial plays have ont join forces, compete collude yields a comeback of $7 whereas gaint support yields a proceeds of $8. Therefore, playing acquiret join yields a higher(prenominal) topic regardless of the tint firms schema. Hence, tiret befriend is a superior outline for two firms.2) The Nash counterweight outline visibility is wear outt work, dupet aid.This is beat seen by noticing that since get intot cooperate is a dominant outline, incomplete participant has a biased incentive to set forth from this write. Hence, it is the uncommon Nash proportion in this spirited.3) The Nash symmetricalness strategy compose leads to nitty-gritty moolah of $16 ($8+$8). The highest heap up shekels are get in this game from the interact, Collude profile, where some(prenominal) players make $9 so that the conglobation wage are $18. Therefore, the Nash equilibrium strategy profile does not maximise gist values.4) The monopolizer prices the reasoned at $18 and sells 3 wholes in equilibrium. Its per unit cost is 12. Thus the monopolizers conglomeration gross is TR = 3 x 18 = $54 and its re sume cost is TC = 12 x 3 = 36. Therefore the monopolists profit is $54 - $36 = $18.If the firms successfully collude, their total meat salary are equal to the monopolists profits. still since they