1assume that a monopolist has a demand curve given by p

Assignment Help Microeconomics

Reference no: EM13372592

1. Assume that a monopolist has a demand curve given by P = 1500 - 4Q, and TC = 100 + 5Q^2 with, MC = 10Q.

(a) If the firm charges a single price to everyone, how much profit does the firm make?

(b) Use a graph to show whether this market is efficient.

(c) If the firm could instead perfectly price discriminate, how much will the firm produce and what are the firm's profits?

(d) Use a graph to show whether this market is efficient.

2. Assume the market for cars is a duopoly, with a market demand curve given by P = 2500 - 2Q. Assume that the two identical firms can produce cars for a constant marginal cost of 5 with zero fixed costs.

(a) If the firms are Cournot duopolists, how much profit with each firm earn?

(b) If the firms are Bertrand duopolists, what will the market price be and how much profit will each firm earn?

3. Apple and Yahoo are engaged in a battle over search engines. Assume that the search engine market is worth $100 million. If Apple enters, and Yahoo does nothing, then Apple can reasonably expect to take 40% of the market. It costs Apple $20 million to build a new search engine. However, if Apple enters and Yahoo decides to compete with Apple by redesigning its search engine to incorporate some of the features of the Apple search engine, Apple can only take 30% of the market. The redesign will cost Yahoo $20 million.

(a) Set up the game and find the equilibrium assuming that Apple and Yahoo move simultaneously.

(b) Set up the game and find the equilibrium assuming that Apple move first, and Yahoo responds.

Reference no: EM13372592

Questions Cloud

1 discuss how organizational architecture and corporate : 1. discuss how organizational architecture and corporate culture are related. use an example of a real-life firm and

Please detail the possibilities of using fiscal policy to : please detail the possibilities of using fiscal policy to stimulate economic activity in denmark in a situation of

What topic or topics of interest have you found at the : what topic or topics of interest have you found at the markkula center?can you apply one two or all three moral

Write a paper with specific and supporting details in which : write a paper with specific and supporting details in which you1. analyze and describe the impact of the different

1assume that a monopolist has a demand curve given by p : 1. assume that a monopolist has a demand curve given by p 1500 - 4q and tc 100 5q2 with mc 10q.a if the firm

Instructors training on how to grade is within the : instructors training on how to grade is within the instructor center.the fiscal and monetary policy and economic

Unemployment and the effects on the economy seven dollars : unemployment and the effects on the economy seven dollars and fourth five cents is the hourly wage set by the state as

What are the advantages of having comparative advantage in : what are the advantages of having comparative advantage in a car industry?for this assignment we have selected 3

Questions read the article slotegraaf r j amp dickson p r : questions read the article slotegraaf r. j. amp dickson p. r. 2004 the paradox of a marketing planning

User Account

All Pages