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!
1. Vertical Relations Suppose Volkswagen is the sole manufacturer of electric go-karts. The inverse demand for electric go-karts is: P = 10 - y The marginal and average cost of producing go-karts is $2 per go-kart. Volkswagen both sells and manufactures go-karts. The marginal cost of selling the go-kart is zero.
(a) What is Volkswagen's profit maximizing price? How many go-karts would it sell and what are its profits? Now suppose Volkswagen only wishes to manufacture go-karts, not distribute them. Instead, it hires Zimbrick to be the sole distributor of its go-karts in Colubmus. Assume that the marginal cost of selling go-karts is zero for Zimbrick. Let W denote the wholesale price that Volkswagen charges Zimbrick per go-kart.
(b) Formulate Zimbrick's profit maximization problem and determine its demand for go-karts treating the wholesale price W as a variable.
(c) Formulate Volkswagen's optimization problem and determine the optimal whole- sale price for a go-kart. How many go-karts does Volkswagen sell and what are its profits? Explain why Volkswagen's profits are lower than in the first part of this question.
(d) Suppose that Volkswagen allows any car dealership in Columbus to sell go-karts. How could Volkswagen benefit from more dealers? Can you think of reasons it might be hurt by selling to more dealers?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The Australian government administers two programs that affect the market for cigarettes
How many tickets to sell to maximize total welfare.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd