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!
Question 1: Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 80 - Q and both firms have constant marginal cost of 60.
(a) What is the market clearing Bertrand price and quantity?
(b) Suppose the two firms merge and regulators want to make sure that welfare is not decreased by the merger. How much would marginal cost have to fall in order for welfare to be identical before and after the merger?
(c) Instead, suppose the regulator only cares about consumer surplus. How much would marginal cost have to fall in order for consumer surplus to be unchanged? Is you answer the same as in part (b)? If not, briefly explain why.
(d) Suppose instead of the firms competing Bertrand, the two firms compete Cournot prior to the merger. Explain whether you would expect your answer to part (c) to go up, down or stay the same. Note: you do not need to do any calculations here. An intuitive argument is fine.
(e) Comment on the following statement is true, false or uncertain. "A horizontal merger that doesn't result in efficiency gains cannot be welfare improving."
If an economy is in short-run equilibrium that is below potential, what forces will bring the economy to long-run equilibrium?
Suppose that the Bureau of Labor Statistics issued statistics about the population and labor as the following:
Suppose demand is still described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there is a price floor of 2.94, what would be the consumer surplus in the market ? Suppose demand is still described by P=5.10-0.80Q and supply is described..
Application Coal mining believes that it can increase labour productivity and, therefore, net revenue by reducing air pollution in its mines. Explain how much pollution reduction should Appalachian Coal Mining Undertake.
The nation of Wrexington utilizes the same method to Compute the unemployment rate as the U.S. Bureau of Labor Statistics utilizes. From the data below, Compute Wrexington's unemployment rate.
Those who advocate that the Fed target monetary aggregates, usually argue that the Fed should not alter its monetary targets in response to temporary changes in macroeconomic conditions, yet those who advocate interest rate targeting never recommend ..
Recalling some basic reasons about why people engage in trade, provide a short example of a market in which consumers and producers exchange goods. In your example, briefly explain who the consumers and producers are, what factors may influence suppl..
The city of Greenville is concerned about rising rent for low-income households. Several policies being considered. Suppose there are a large number of construction companies, In the absence of any government intervention, what will be the long run p..
The nation of Isolani forbids international trade. In Isolani, you can exchange 1 car for 5 motorcycles. In other countries, you can exchange 1 car for 4 motorcycles. These facts indicate that
Consider the following possible schemes for taxing a monopoly: A proportional tax on profits. Explain how each of these taxes would affect the monopolist's profit-maximizing output choice. Would the tax increase or decrease the deadweight loss from m..
Please label the x and y axes, the supply & demand curves and the equilibrium points. You do not need to use any actual numbers. Then, analyze how the changes described in each case affect the equilibrium price and quantity of airline tickets for eac..
Which of the following was not a cause of the U.S. budget deficits in the 1980s? Which of the following does not qualify as an automatic stabilizer? Income taxes affect aggregate demand. Which of the following constitutes a direct tax?
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