Plant sizes get larger as you move from ATC-1 to ATC-4. Ou…

Plant sizes get larger as you move from ATC-1 to ATC-4. Output ATC-1 ATC-2 ATC-3 ATC-4 1,500 $ 10 15 $ 20 $ 30 2,000 8 12 17 25 2,500 9 10 15 20 3,000 12 8 13 18 3,500 15 6 11 16 4,000 18 10 9 14 4,500 20 12 7 12 5,000 24 15 11 10 5,500 29 19 13 8 6,000 35 25 15 9 In the long run, the firm should use plant size ATC-3 for what level of output?

Answer the question based on the payoff matrix for a duopoly…

Answer the question based on the payoff matrix for a duopoly in which the numbers indicate the profit in millions of dollars for each firm. Assume that Firm B adopts a low-price strategy; Firm A maintains a high-price strategy. Compared to the results from a high-price strategy for both firms, Firm B will now