Suppose that one of the food trucks decides to break the agreement and produce 60 meals per day. What will be the price charged per meal? Suppose that one of the food trucks decides to break the agreement and produce 60 meals per day. What will profit be for this food truck (the one that is now producing 60 meals)? What happened to the profits for the food truck that kept to the agreement and produced 50 meals?
Suppose two food trucks face the following market demand curve and have the same marginal revenue and marginal cost curves. This means they both face the same costs, $1 per meal.
Suppose that one of the food trucks decides to break the agreement and produce 60 meals per day. What will be the
Suppose that one of the food trucks decides to break the agreement and produce 60 meals per day. What will profit be for this food truck (the one that is now producing 60 meals)?
In retaliation for not keeping to the agreement, the other food truck has increased its production to 60 meals as well! Now, 120 total meals are being produced each day.
What price will be charged per meal?
With 120 total meals being produced each day, what will each firm earn in profits?
After realizing that profits are falling, one of the food trucks decides to really work hard and increase production to 100 meals per day! Now, 160 meals are being produced, 100 from one food truck and 60 from the other.
What is the market price with 160 meals being produced?
The profit to the food truck making 100 meals is___________ and the profit to the food truck making 60 meals is___________.
After realizing that the agreement has broken down, the other food truck also increases its production 100 meals, so now 200 total meals are being produced each day.
What is total profit to each food truck?
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