Reference no: EM131073910
The world's top for manufacturers on inexpensive random access memory chips, a key component of all consumer electronic devices, agreed to fines and jail term for several executive because of 1999-2002 price fixing. The criminal conspiracy raised prices 400 percent in a six-month period from US$4 per 100 megabits and then orchestrated maintaining the price at US$3. DRAM chip are generic and easily substitutable between supplier. As a result, a CARTEL agreement to limit production is necessary to maintain price above competitive level. SAMSUNG and HYNIX, two KOREA firms that produce the majority of the chips, paid US$300 million and US$185 million fines respectively. Infineon Technologies or Germany paid a US$160 million fine, and four executives went to jail for several months and paid individual fines of US$250 000. Micron Technology of Boise, Idaho, receiced immunity for cooperating with the prosecutors and complainants DELL and HP in making the case.
(1) Suppose two (2) Korea electronics companies, Samsung (firm S) and HYNIX (firm T), jointly hold a patend in a component used on DRAM. Demand for the component is given by the following function: P=1000-Qs-Qt
where Qs and Qt are the quantities sold by the respective firms and P is the (market) selling price. The total cost function of manufacturing and selling the component for the respective firms are:
TCs=70000 + 5Qs +0.252s
TCt=110 000 +5Qt+0.152t
(i) Suppose that 2 firm act independently, determine the optimal output and price with each firm seeking to maximize its own total profit from the sale of the components.
(ii) Suppose that 2 firms decide to form a CARTEL and act as a monopolist to maximise total profits from the production and sales of the components determine the optimal output, market share and company total profit when the CARTEL is occurs.
Common inventory control systems
: Evaluate the efficiency of two (2) common inventory control systems. Determine the ways in which they provide a firm with a competitive advantage in the marketplace. Justify your response.
|
Prepare a research paper about hiv
: Prepare a research paper about HIV to educate your colleagues on the molecular basis of a disease. You should begin by describing the proper molecular structure and function of the affected areas.
|
Employee for the garnishment orders
: What would you advise the boss - about firing the employee for the garnishment orders, and about garnishment generally?
|
What the trade-offs between different preventive strategies
: Sometimes, preventive goals seem to collide with each other. Examples include fish consumption advisories, breast feeding advisories, and the use of DDT to control malaria. What are the trade-offs between the different preventive strategies involv..
|
Determine the optimal output and price with each firm
: The world's top for manufacturers on inexpensive random access memory chips, a key component of all consumer electronic devices, agreed to fines and jail term for several executive because of 1999-2002 price fixing. Suppose that 2 firm act independen..
|
Company stage of internationalization
: Diagnose your company's stage of internationalization or research another company you wish to know more about. Identify the company's corresponding organizational structure and IHR strategy with clear reference and make appropriate use of the key ..
|
Velocity of money is constant
: Suppose that this year's money supply is $1/2 trillion, nominal GDP is $15 trillion, and real GDP is $10 trillion. a. What is the price level? b. What is the velocity of money? c. If the velocity of money is constant, but output of goods and services..
|
Perfectly competitive market and another extreme is monopoly
: Discuss situations involving binding price ceiling and price floor. You can pick your examples from housing industry, health care industry, or from any other industry. Arrange the following four kinds of market on a continuum where one end will have ..
|
Differences between asymmetrical and radial symmetry
: Differences between asymmetrical, radial symmetry and bilateral symmetry. Differences between endotherms and exotherms. Definition and examples of epithelial tissue. Definition and examples of connective tissue.
|