Vanessa is an oligopolist who believes that if she decreases her price, her competitors will not follow and decrease their prices. Draw a graph showing Vanessa's firm in short-run equilibrium, using demand, marginal cost, marginal revenue, and average-total-cost curves. Indicate the price and quantity Vanessa will produce in short-run equilibrium, and show a price decrease that results in Vanessa's firm still earning positive economic profits.

***What would this look like? Thank you!! :)

Question

Vanessa is an oligopolist who believes that if she decreases her price, her competitors will not follow and decrease their prices. Draw a graph showing Vanessa's firm in short-run equilibrium, using demand, marginal cost, marginal revenue, and average-total-cost curves. Indicate the price and quantity Vanessa will produce in short-run equilibrium, and show a price decrease that results in Vanessa's firm still earning positive economic profits. 

***What would this look like? Thank you!! :)

uri · Answer

This is micro economics and I totally hate it,sorry,lol.

anonymous · Answer

ohh okay, no worries :) thank you though @uri :)

@Jhannybean does this make sense to you? :/

jhannybean · Answer

Nope. :(

anonymous · Answer

ahh okay, darn :(

thanks though1! :D