(e) What output should farmer 1 produce if he/she expects their rival to produce 20 units? [4] (f) Calculate the profits if farmer 2 decides to break the cartel agreement [4] (g) Does joining a cartel offer any benefits to both farmers? Justify your answer [4] (h) What if farmer 1 is a leader and farmer 2 a follower, determine the price, quantity and profits made by these two farmers. [8]

/in /by

(e) What output should farmer 1 produce if he/she expects their rival
to produce 20 units? [4] (f) Calculate the profits if farmer 2 decides
to break the cartel agreement [4] (g) Does joining a cartel offer any
benefits to both farmers? Justify your answer [4] (h) What if farmer 1
is a leader and farmer 2 a follower, determine the price, quantity and
profits made by these two farmers. [8]

You might also like
Emmanuella purchased a put option on British pounds for $.06 per unit. The strike price was $1.85, and the spot rate at the time the pound option was exercised was $1.69. Assume there are 31,250 units in a British pound option. What was Emmanuella’s net profit on the option
For supply to respond to an increase in demand the supplier must be aware that demand has indeed increased, however supply may not respond immediately to the change in demand”, Describe the factors that may attribute to this situation.
Econometrics deals with the measurement of economic relationships which are stochastic or random. The simplest form of economic relationships between two variables X and Y can be represented by: Yi   0  1Xi Ui ; where  0 and 1  are regression parameters and Ui  the stochastic disturbance term What are the reasons for the insertion of U-term in the model?
the data below shows a tabulation on the production of a hypothetical product output (Q) total cost 0 25 1 32 2 38 3 42 4 48 5 58 6 67 7 78 8 98 use the data to answer the following questions:- * determine the total fixed cost * average variable cost schedule * marginal cost schedule * suppose this product is produced on a perfect market and the price of the commodity= 10. Determine the output Q that will maximize the profits. What is the maximum profits achieved by the firm? (show all the workings)
Xolisile and Xolani are twins. To reward them for passing matric well, their parents gave them R20 000,00 each. Each one of them decided to invest three quarters of their money for a period of three years. Xolisile invested her money at a simple interest rate of 6,5% per annum. Xolani invested her money at an interest rate of 6,5% per annum, compounded annually. What is the difference between the values of the two investments at the end of the period?
"As long as preferences are Convex, every Pareto efficient allocation can be supported as competitive equilibrium" Explain using edge worth box.
Analyse agricultural legislation which governs non-marketing agricultural activities in south africa
bandile want to start cycling and she wants to know the slope of the route she planning to take. if her location is indicated on a coordinate system of axis , her starting point is at (2:3) and the finishing point is at (8:6) determine the the slope when straight line is drawn between these points state whether the line has descending or ascending trend from left to right on the co-ordinates system of axis