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The present administration has concerns with continuing to allow China from stealing our intellectual property and not realing in business back home

Economics

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The present administration has concerns with continuing to allow China from stealing our intellectual property and not realing in business back home. Is this is a wise decision? Give reasons and supporting facts.

1. The following table shows the short-run average total costs for five successively larger plant sizes (plant size a to E) for a manufacturing company.

Output level	ATC for Plant A ($)	ATC for Plant B ($)	ATC for Plant C ($)	ATC for Plant D ($)	ATC for Plant E ($)
10	9	13	16	17	20
20	7	11	13	14	17
30	6	8	11	12	15
40	7	5	7	8	14
50	8	6	4	6	12
60	9	9	6	4	8
70	10	13	12	8	6
80	14	16	16	14	9
90	17	18	19	17	14

Based on the above five possible plant sizes and their relevant short run ATCs, construct a table showing the long run ATC of the firm for output levels 10 to 90. Then, use the information to draw the long run ATC curve.

2. marks)

 

2. The following questions are related to collusive model of oligopoly market:
   1. Why oligopoly firms would want to collude?                                                        (2 marks)
   2. Explain the effects of the collusion on price, output and profit of the oligopolist. Graphical illustration is required.     (3 marks)