Working with Numbers and Graphs: 1, 2, 3, 4(p272)1.Diagrammatically identify the quantity of output a monopolistic competitor produces and the price it charges.Exhibit 1 in the text does this well, with quantity q1and price P1.2.Diagrammatically identify a monopolistic competitor that is incurring losses.3.Total industry sales are $105 million. The top four firms account for sales of $10 million, $9 million, $8 million and $5 million, respectively. What is the four-firm concentration ratio?
4.Refer to the following figure. Because of a cartel agreement, the firm has been assigned a production quota of q2units. The cartel price is P2. What are its profits equal to if it adheres to the cartel agreement? What are its profits if it breaks the cartel agreement and produces q3?