Pregunta
upstudy study bank question image url

After Gregor implements his new plan, the price of water \( \qquad \) to \( \qquad \) \( \$ 1.60 \) per gallon. Given Haidy and Gregor's production levels, Gregor's profit becomes \( \qquad \) \( \$ 257.60 \) and Haidy's profit becomes \( \qquad \) \( \$ 201.60 \). Because Gregor has deviated from the cartel agreement and increased his output of water to 35 gallons more than the cartel amount, Haidy decides that she will also increase her production to 35 gallons more than the cartel amount. After Haidy increases her production, Gregor's profit becomes \( \$ \) \( \qquad \) , Haidy's profit becomes \( \qquad \) , and total profit (the sum of the profits of Gregor and Haidy) is now \$ \( \qquad \) .

Ask by Haynes Goodwin. in the United States
Mar 16,2025

Solución de inteligencia artificial de Upstudy

Respuesta verificada por el tutor

Responder

Gregor's new profit is \$257.60, Haidy's new profit is \$201.60, and the total profit is \$459.20.

Solución

¡Inicia sesión para desbloquear respuestas gratis!

Una plataforma de aprendizaje en la que confían millones de estudiantes y profesores reales.

star-icon Descubrir

Respondido por UpStudy AI y revisado por un tutor profesional

The Deep Dive

It's fascinating to look at how small changes in production levels and pricing strategies can significantly impact profits! In oligopolistic markets, like the water supply scenario with Gregor and Haidy, firms must navigate a delicate balance between collaboration and competition. When one member deviates from agreed production levels, it can lead to a ripple effect, prompting others to adjust their strategies, usually leading to decreased profits for all parties involved. This scenario is a classic example of the "prisoner's dilemma" in economics, where individual decision-making can lead to suboptimal outcomes for everyone involved. To avoid such pitfalls, it's crucial for firms in similar situations to maintain strong communication and trust among each other to reinforce cooperation and ensure collective profitability, rather than spiraling into competitive ruin.

preguntas relacionadas

Latest Economics Questions

¡Prueba Premium ahora!
¡Prueba Premium y hazle a Thoth AI preguntas de matemáticas ilimitadas ahora!
Quizas mas tarde Hazte Premium
Estudiar puede ser una verdadera lucha
¿Por qué no estudiarlo en UpStudy?
Seleccione su plan a continuación
Prima

Puedes disfrutar

Empieza ahora
  • Explicaciones paso a paso
  • Tutores expertos en vivo 24/7
  • Número ilimitado de preguntas
  • Sin interrupciones
  • Acceso completo a Respuesta y Solución
  • Acceso completo al chat de PDF, al chat de UpStudy y al chat de navegación
Básico

Totalmente gratis pero limitado

  • Solución limitada
Bienvenido a ¡Estudia ahora!
Inicie sesión para continuar con el recorrido de Thoth AI Chat
Continuar con correo electrónico
O continuar con
Al hacer clic en "Iniciar sesión", acepta nuestros términos y condiciones. Términos de Uso & Política de privacidad