Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Defendo has decided to introduce a revolutionary video game, and as the first in the market. In deciding what type of manufacturing plant to build, it has the choice of two technologies. Technology A is publicly available and will result in annual costs of C (the power of A) (q) = 10 +8q.
Technology B is a proprietary technology developed in Defendo's research labs. It involves higher fixed cost of production, but lower marginal costs: C(the power of B) (q) = 60 +2q
Defendo's CEO must decide which technology to adopt. Suppose Defendo expects its archrival, Offendo, to consider entering the market shortly after Defendo introduces its new product. Offendo will have access only to Technology A. If Offendo does enter the market, the two firms will play a Cournot game (in quantities) and arrive at the Cournot-Nash equilibrium. Market demand for the new product is P=20-Q, where Q is total industry output.
Explain which technology would you advise the CEO of Defendo to adopt given the threat of possible entry? Also what will be the Defendo's profit given his choice? [Hint: Draw the game tree, and solve for the equilibrium for this sequential move game.]
Explain why this formulation of consumption may provide a more accurate description of consumption than the simple consumption function that depends only on current income.
If you were to learn about a bottle of gatorade increased in size from 2009 to 2010, should that information affect your calculation of the inflation rate. If so, how.
Illustrate what are some examples of goods which the U.S. has comparative advantage in producing.
In 2012, Balnur taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2013, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business.
English is becoming the usual language for international transactions, even if the language of neither country is English.
Compute the yield to maturity to the nearest percentage point.
What is the impact of the shrinking world on whether small to medium sized businesses should engage in international trade.
Edison Electric Company's president has been arguing that residential electric rates need to be raised relative to industrial rates.
What are the advantages and disadvantages of regression models in comparison to using a computerized regression routine.
Use EViews to get the correct critical t values for constructing the interval.
What is Wirelesses' producer surplus from sales for each low-demand as well as consumer.
illustrate what type of unemployment will then occur. What is the natural rate of unemployment.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd