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!
Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40.
(a) What is the market clearing Bertrand price and quantity?
(b) Suppose the two firms merge and regulators want to make sure that welfare is not decreased by the merger. How much would marginal cost have to fall in order for welfare to be identical before and after the merger?
(c) Instead, suppose the regulator only cares about consumer surplus. How much would marginal cost have to fall in order for consumer surplus to be unchanged? Is you answer the same as in part (b)? If not, briefly explain why.
(d) Suppose instead of the firms competing Bertrand, the two firms compete Cournot prior to the merger. Explain whether you would expect your answer to part (c) to go up, down or stay the same. Note: you do not need to do any calculations here. An intuitive argument is fine.
(e) Comment on the following statement is true, false or uncertain. “A horizontal merger that doesn’t result in efficiency gains cannot be welfare improving.”
If it causes output to increase by more than 10 percent, production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale.
Describe political and social impacts of this association. Are regional trade associations beneficial for global economy. For members of association.
Expecting that wool prices would remain high, wool producers raised a lot more sheep.
Illustrate what does the area EBCD represent. Provide a full explanation of the concept that is shown in that area.
What market structure best characterizes the market in which University of Phoenix competes?
Utilizing the preceding write equations for total cost, average cost, and average variable cost.
q.the inverse market demand for mineral water is p200-10q where q is the total market output and p stands for price of
Interview a small business owner and ask him or her about both the positive and the negative role of government in their business. Write a 2 page summary of your interview and include the questions you asked.
q.if a firm faces a shortage of workers with very special skills it may decide to undertake necessary training itself.
Make two income statements, are utilizing the traditional accounting approach another using the opportunity cost approach to determine the profit.
Should the CEO at Plain Truth cancel the audit and rely on a brief year-end summary from each sales account manager? Why?
If extension of provisions is made to final goods but not to intermediate goods, what would this do to effective rate of protection (ERP) for country provided by its tariff schedule.
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