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!
Two firms compete in an undifferentiated Bertrand market. Suppose that the firms face a demand curve given by P = 60 – Q and both firms have constant marginal cost of 40.
(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 supply at every price is reduced by five gallons, what will the new equilibrium price be.
year on television advertising campaigns, promoting their beer brands. Obviously, if one firm is advertising its brands heavily, the others must also advertise to defend their market shares.
Illustrate what is the equilibrium price and quantity of hotel rooms on Manhattan Island.
Describe briefly one trade topic identified by the WTO on the website. And, what did you learn from the Web site about the WTO.
What are three limitations to traditional cost risk analysis? Explain how qualitative and quantitative data collection is different. Also discuss how the risk driver approach can be useful in minimizing the limitation to traditional cost risk analysi..
Explain why a system of marketable pollution permits leads to less costly pollution abatement and a higher concentration of polluted areas than a command and control system.
To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a+b+c=MC. If the taxes are set so that each resident shares the cost evenly (a=b=c), explain how many paths will get built.
Illustrate what is the price elasticity of demand. What is the cross-price elasticity of demand. Suppose the price of the good, P, goes to $2.00.
If the average level of consumer surplus for each hotel guest equals $24, illustrate what is the total consumer surplus per night.
What is purchasing power parity? How is it different from exchange rate? Demonstrate difference between the two.
Why anyone would pay a positive price for a CBOT or NYSE seat and what this price represents. Second, explain why the seat values have changed so much in recent months.
How is packet-switching related to the Internet and why is it important? How is TCP/IP related to the Internet and why is it important? How are HTTP and HTML related to the World Wide Web and why are they important? What is a web browser and why is i..
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