Find the nsh equilibrium

Assignment Help Business Economics
Reference no: EM13795929

After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low price. Assume all customers purchase from the firm with the lowest price. If both firms charge the same price, they split the market. The high price is the monopoly price, so at the high price, the full market is worth the same amount as is it is for monopoly (i.e. your answer to question 2d). At the low price, the market is worth 60% of the value of the monopoly market.

a. Set up the game as a simultaneous move game.

b. find the Nsh equilibrium.

Reference no: EM13795929

Questions Cloud

Testing in health promotion planning issues : How would you use these theories in your program planning?
Global competition on the decisions made by management : Global competition on the decisions made by management with regards to change in labor demand, supply, relations, unions, and rules and regulations in your chosen industry.
Organizational theories-effective agency and supporting : Read the Discussion Participation Scoring Guide to learn how the instructor will evaluate your discussion participation throughout this course.
About budgeting and investment : Budgeting and Investment
Find the nsh equilibrium : After a few years of monopoly, the family that owns the coca-cola monopoly gets in a flight, and they split the company in two. Now there are two large coca-cola retailers in your area, and each retailer must decide whether to charge a high or low pr..
Preferred method for prosecuting suspected terrorists : Write a 1,400- to 1,750-word persuasive paper arguing your position on using the criminal legal system and law enforcement as the preferred method for prosecuting suspected terrorists.
Identify the consumer and producer surplus on the graph : Assume that the market for Coca-cola in your area is perfectly competitive, with Demand P= 11-0.1Qd and supply P= 1+ 0.1Qs. Each firm that sells Coca-cola is indentical, with Total Cost TC= 1+0.5Q+2Q? Identify the consumer and producer surplus on the..
Write an essay about article can the american dream be saved : Read an article then write an analysis and respond essay. Article: Can the American Dream Be Saved? by Stuart M. Butler.
Why are virtually all large business firms corporations : What are the advantages and disadvantages of the corporation as a form of business organization - explain how the capacity utilization rate and the interest rate affect the level of investment.

Reviews

Write a Review

Business Economics Questions & Answers

  Friends monthly demand

Your friend's monthly demand for minutes of calling is given by the equation 50, where p is the price of a minute.

  Explain what will happen to price and quantity

In the market for laptop computers, assume future prices are expected to fall. Using two graphs draw two possible but different scenarios that may result which account for how consumers would react and how producers would react. (Hint: In each graph,..

  Among the measures of central tendency

A labor economist wants to know the relationship between education (measured by years of schooling) and annual earnings (measured in $1000). A random sample of 222 workers revealed a correction coefficient of 0.88. Based on the coefficient, Among the..

  Type of planning conducted on a long-range

The type of planning conducted on a long-range basis by top managers is usually called

  Explain by using graphs welfare off policy measures

Explain also by using graphs welfare off policy measures on consumer and producer surplus and net gain or loss to society.

  Describe how the us oil companies can remain competitive

describe how the US oil companies can remain competitive in the US market when over 35% of crude oil is currently sourced from domestic deep water drilling.

  Qa purely spirited wheat farmer can sell any wheat he grows

q.a purely spirited wheat farmer can sell any wheat he grows for 20 per bushel. his 5 acres of land show diminishing

  Compute the price elasticity of demand when price changes

Compute the price elasticity of demand when price changes from $100 to $80 per pair using the average formular.

  Describe the current account balance the capital account

describe the current account balance, the capital account balance, and the official settlements account balance.

  Monetary easing and some attempt at structural reform

Abenomics seems to me like a straightforward and modern plan of economic revelation through monetary easing and some attempt at structural reform. While it's still early, it looks like many of the predicted effects of this approach have begun to mate..

  What is the future worth of equal quarterly payment series

What is the future worth of an equal quarterly payment series of $2500 for 10 years if the annual interest rate is 9% compounded monthly?

  Decentralization of corporate decision-making

Assume D represents the level of decentralization of corporate decision-making. The benefits of decentralization, denoted B, = 3D and the costs of decentralization, denoted, C = 2D + 2D2. What is the optimal level of decentralization

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd