Homework answers / question archive / A large share of the world supply of bauxite (used for aluminum) comes from Australia and China

A large share of the world supply of bauxite (used for aluminum) comes from Australia and China

Marketing

Share With

A large share of the world supply of bauxite (used for aluminum) comes from Australia and China.

Suppose that the marginal cost of mining bauxite is constant at $1,000 per tonne of bauxite, the demand for bauxite is described by P = 15,000 - Q and the MR is P = 15,000 - 2Q

a. If there were many suppliers of bauxite, what would be the price and quantity?

b. If there were only one supplier of bauxite, what would be the price and quantity?

c. If Australia and China formed a cartel, what would be the price and quantity?