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!
Assume the market demand curve in an industry is characterized by P=1-Q, where P is the market price and Q is the total quantity supplied to the market. Assume there are three firms in this industry. All have a zero marginal cost of production.
1. In a one-shot interaction, what is the Cournot quantity for each firm?2. What is the profit level associated with the Cournot quantity for each firm?
Now consider an infinitely repeated version of the above game. Suppose that the firms agree to act collectively as a monopolist. All firms have the same discount factor .
3. How much will each individual firm produce under the cartel arrangement?4. How much profit will each individual firm make under the cartel arrangement?5. Suppose a firm decided to cheat on the cartel arrangement. How much would it produce i.e. what is the best possible deviation it could make? How much profit would it get from making this deviation?6. How big does the discount factor have to be in order to support the cartel arrangement through the threat of playing Cournot forever as punishment for deviation?7. Compare this with the two firm case. Is the delta that supports the two-firm case higher or lower than the three-firm case i.e. is it easier to support a cartel with two firms or with three firms? Explain.
Using the Lerner index, find the price elasticity of demand for Botox and interpret what this value means to total revenue if the price of Botox were increased one percentage point.
Bertand: If the firms compete on the basis of (continuous) price, what is the Nash equilibrium if the game is played once? A finite number of times? Explain clearly.
Of the total liabilities, $190 million were deemed to be financing liabilities. Make a reformulated balance sheet that distinguishes items involved in operations those involved in financing activities.
Elucidate why the price elasticity of demand differ along a demand curve, even if the demand curve is linear.
Illustrate the difference in the price elasticity of demand for an individual firm in a perfectly competitive industry as compared with a monopolist.
Illustrate price as well as quantity will maximize revenue. Elucidate the total revenue and price elasticity at this point.
Illustrate what special problems are faced by eastern european economies as they make the transition from central planning to competitive markets.
Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?
If the organization wishes to restore sales to 10,000 per month determine the price they need to charge.
In the short-run, machinery is fixed also labor is variable for a business that uses only these two inputs. If, at the current level of output, marginal product of labor is declining
Elucidate your answer also describe terms relevant to elasticity used in your explanation.
Which nation has the absolute advantage in the production of tanks. Why is it this country.
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