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!
Exercise
Godzilla and Macrosoft produce software and operating systems respectively, both at marginal cost 10. Each firm has monopoly power in the production of its products. The products are perfect complements, i.e., consumers only obtain positive utility if they buy both products. The demand curve for the composite good software and operating system is given by
where p ≡ pc + Pm is the price of the composite good, pg the price of software and Pm the price of the operating system.
a) What is the profit-maximizing P in the case that Godzilla and Macrosoft merge?
b) Consider the nonintegrated structure. Suppose that Godzilla chooses its price first, and that Macrosoft only picks its price after observing Godzilla's price. Is the equilibrium price of the composite good higher than in the case of a merger?
c) Suppose now that the two firms choose their prices simultaneously. Is the equilibrium price of the composite good higher than in the case of a merger?
Let the utility function be U = log(x) - l, where l is labour and x is consumption. Find the level of labour supply if the wage rate w=10.
Explain the circumstances in which a monopolist may encounter a free rider problem and determine the senses in which a perfectly-discriminating monopolist is efficient or inefficient.
This question is intended to understanding of the basic Ricardian model by having you work through a problem on your own. There are two nations, Canada and United States, and two goods X and Y.
If the production function is Q=K^.5 L^.5 and capital is fixed at 1 unit, then the average product of labor when L=36 is?
can country A change the outcome of the game by burning the bridge they are crossing to invade and committing its troops to fight? expand the game tree to show this option for county A and find the new Nash equilibrium. Explain
Business proposal for your chosen good or service. Include assumptions about the elasticity of demand and the market structure for the good or service.
Imagine you have a price weighted index made up of 2-stocks, Stock A and Stock B. The price of A equals $30 and the price of B equals $70.
Define the factor that estimate the slope of the LM curve and whether an increase in theses factor will make the curve flatter or steeper.
The question is that if two firms in the Cornout market merge into one firm, what would the merger result in? how much of marginal cost would prevail in the market, etc are answered in a detailed in manner in the solution.
Draw a supply-demand diagram of the kenyan mangoes market to illustrate both the autarky and free trade positions. make sure you use all the information presented in the some facts above?
What is the profit-maximizing price of carpets? What is the maximum amount of profit that the firm can earn selling carpets?
Explain how China's price controls have changed consumer surplus, producer surplus, total surplus, and the deadweight loss in the markets for coal, petrol, and diesel.
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