1. Welcome to the Cartel! An Exercise in Economic Analysis

2. TR = $11,000 TR = $13,500

3. Small Firms: Economic Profit = $4*150 = $600

4. Small Firms: Economic Profit = $3*200 = $600

5. Big Firms: Economic Profit = $4*350 = $1400

6. Big Firms: Economic Profit = $2*400 = $800 Industry Economic Profit = $3400

7. Blue Cartel Results – Blue (sec. #8) $xxx Price = $xx Quantity = xxx Total Profit = $xxx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

8. Green Cartel Results – Green (sec. #8) $xx Price = $xx Quantity = xxx Total Profit = $xx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

9. Yellow Cartel Results – Yellow (sec. #8) $xx Price = $xx Quantity = xxx Total Profit = $xx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

10. A Better Way... SuperTech produces 250SuperTech produces 250 Tiger produces 225Tiger produces 225 Vulture produces 425 each...Vulture produces 425 each... Have Zynadine shut down!!!!Have Zynadine shut down!!!! Price = $15; ATC = $5 Total Econ profit = $9000... split up in some way each finds equitable

11. Welcome to the Cartel! An Exercise in Economic Analysis

12. A Better Way...

13. Blue Cartel Results – Blue (sec. #9) $xxxx Price = $xx Quantity = xxx Total Profit = $xxxx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

14. Green Cartel Results – Green (sec. #9) $xxx Price = $xx Quantity = xxx Total Profit = $xxx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

15. Yellow Cartel Results – Yellow (sec. #9) $xxx Price = $xx Quantity = xxx Total Profit = $xxx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

16. Blue Cartel Results – Blue (sec. #10) $xxxx Price = $xx Quantity = xxx Total Profit = $xxxx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

17. Green Cartel Results – Green (sec. #10) $xx Price = $xx Quantity = xxx Total Profit = $xx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx

18. Yellow Cartel Results – Yellow (sec. #10) $xx Price = $xx Quantity = xxx Total Profit = $xx Quota:Econ. Profit:Gain: Tigerxxx$xxx SuperTechxxx$xx$xxx Vulturexxx$xx$xxx Zynadinexxx$xx$xxx