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!
Suppose that the gross utility of a representative consumer is V = N 1/2 where N is the number of products. Their net utility is U = V (N) - P = N 1/2 - P where P is the equilibrium price when there are N firms. Suppose that P = 1/N , so that as the number of firms increases, theequilibrium price falls. Marginal cost of production is zero, but each firm incurs a fixed cost equal to f . The marginal benefit of another variety (firm) is dV/dN = 1/(2√N). The number of consumers is normalized to one.
(a) What is the socially optimal (first-best) number of firms?
(b) Assuming that the market share of each firm when there are N firms is 1/N , what is the free-entry number of firms?
(c) Compare the socially optimal number of firms with the free-entry number. When is there excess variety? Insufficient variety? Why?
The City Council in Bigtown is considering removing the monopoly rights of Bigtown Cable TV, Inc. Bigtown Cable is arguing that the competition in the cable TV market will be chaotic and result in a loss of jobs. As the staff economist for the City C..
Suppose the going market rate of interest on high-quality corporate bonds is 12 percent. FORTRAN Corporation is considering an investment project which will last 10 years and requires an initial cash outlay of $1.5 million
Contrast the difference between temporary and permanent damages on the incentives of people to build new houses near the cement factory
If MC was $10 per unit, how much would the firm chose to produce? If FC was $200, how much does the firm earn in profits?
If Sammy refuses to contribute to the butterfly garden, he'll not be able to enjoy its benefits if it is built.
How many cases of Robert Mondavi Private Select were sold each year from 2005-2008? a. Construct a table showing the total number of cases sold each year. b. Construct a bar graph showing the total number of cases sold each year. What is the trend in..
A specialty concrete mixer used in construction was purchased for $300,000 7 years ago. Its annual O&M costs are $105,000. At the end of the 8-year planning horizon, the mixer will have a salvage value of $5,000. If the mixer is replaced, a new mixer..
Identify ethical perspectives in the global organization.
congress decides to reduce our dependence on foreign oil by imposing a $.50 tax on each gallon of gasoline at the pump. Elucidate briefly what kind of supply and demand elasticity for gasoline must be present in the U.S. market, in order for this..
Last year, $100 million in outstanding bank loans to a developing nation’s government were not renewed, and the developing nation’s government paid off $50 million in maturing government bonds that had been held by foreign residents.
q1. the hilton hotel chain serves both business and vacation travelers. d business and mr business represent the demand
Show graphically and explain how a permanent beneficial supply shock affects both short and long-run levels of output and inflation in the economy. (Answers without graphs are useless)
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