Under what circumstances are economic profits good indicator

Assignment Help Business Economics
Reference no: EM13874730

1. Under what circumstances are economic profits a good indicator of market power? A poor indicator?

2. Explain why it is not possible to estimate the demand curve simply by fitting a line through annual observations on price and quantity.

Reference no: EM13874730

Should the commission have not also considered the effect

Rather than look at the effect on the "competitiveness" of the dominant firm, should the Commission have not also considered the effect of the dominant firm's conduct on eff

What circumstances will film have very little market power

Are these options likely sufficient to conclude that even if all theaters in a city are owned by one firm, that that firm will not be a monopolist? Under what circumstances

Discuss how value of flexibility would affect our analysis

Although strategic investment can confer an advantage on the first mover, such investment also locks in the firm. Discuss how the value of flexibility would affect our analysi

Write down an algebraic form of a cost function

Standard empirical analysis of learning by doing estimates a "progress ratio" that is the reduction in a firm's average costs. Write down an algebraic form of a cost function

What additional types of strategic effects have introduced

Now suppose that w > 0. What additional types of strategic effects have been introduced into the game? In a reaction function diagram show the different strategic effects

Will price be higher in the first or the second period

There are learning economies, so that costs in the second period are a function of production in the first period. Will price be higher in the first or the second period?

Is it possible for an incumbent to use advertising

If advertising has positive externalities that benefit the industry as a whole, is it possible for an incumbent to use advertising in a strategic manner to deter entry? Will

Show that result also holds when measured by the yardstick

Show that a monopolist always advertises too much when measured by the yardstick of the preadvertising tastes. Show that the result also holds when measured by the yardstick

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd