In exhibit six what is the highest dollar amount to which marginal cost can rise without changing price? Files attached.© BrainMass Inc. brainmass.com October 9, 2019, 7:03 pm ad1c9bdddf
In exhibit six the highest dollar amount the marginal costs can reach without affecting price is $18. This is because you are dealing with a kinked D curve, and the MC can fluctuate between the area where the marginal revenues slope changes, without affecting price or quantity. Point B represents the highest value in this area: the $18 price level.
In the ...
Examples of cartels which have suffered a lot of undercutting due to economic incentives are embedded.