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4. Which of the following conditions can prolong the life of a car al There are many firms in the market that are not members of the (b) It is difficult to know what price any cartel member is actually charu There are only a few firms in the market and they all belong to the carte (d) The cartel has no ability to punish members who cheat on the cartel. 2 Monopoly (9 points) 300 – 2Q and their cost is CIO) Silecto has a monopoly for silent velcro. Their demand is p 1922 +60Q+Q2 (a) Find the profit-maximizing quantity and price. (2) (b) What fraction of the price is markup, what fraction is cost? (2) Another firm. HipStore sells indie music products: vinyl, concert tickets, merchandise etc. The bands under contract only last for two years: Either they get really successful and bought up by a major label or they vanish into obscurity. The demand in the first year is given by P. (0) 15-/4, but in the second year less people want to buy it from HipStore if it is already mainstream, so pala.a) -24 – /2 – 9/4. The cost function is given by C( 42) = 200+/4+/4. (c) What are Hip Store's optimal quantities in the first and second year?! (3 points) Consider a monopoly with the cost function demand function for its product: p = 90-9. () — 225 + 304 +7°/2. It faces the following inverse (d) What is the value of the dead-weight loss due to the monopoly? Show the area on a graph and give a value. (2) Hit The period monopoly question Define total p e total revenue minus total com across both years, then take the two first-order conditions. Show your work clearly |