Reference no: EM13838592
Assume that the demand for chalk is = 8 -0.1Q, where is the market price and is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $2. Each firm choose its own output level, , and takes whatever price the market determines. To simplify the problem, each firm can choose from three levels of output (in thousands): low ( = 8), medium ( = 10), or high ( = 12), with fixed costs (in thousands) of $2, $4, and $4, for low, medium, and high output, respectively. Assume, for simplicity, that all other firms choose the same output level (as each other), so that low ( =24), medium ( = 30), or high ( = 36).
a. Construct a payoff table for this game, using profits per firm as the payoffs.
b. Identify all pure strategy Nash equilibria (if any exist).
c. Describe the competitive nature of this industry. How might this change if each of the other firms can independently choose their output level? What is each firm likely to choose? What implication(s) would this have for other firms?
Design and implement the database-best home real estate
: you are to design and implement the database of Best Home real estate that you have modelled in assignment-1 and a series of SQL queries to reflect the business logic of it
|
Firm facing perfect competition
: A firm facing perfect competition is known as a price taker and therefore cannot employ the use of _______?
|
Contrast the production function for product and service
: Compare and contrast the production function for a product and a service. You should base your discussion on specific industry examples (i.e., automobiles or dishwashers or frozen pizzas are examples of products and tax preparation services or legal..
|
What circumstances would monopolistic firm
: Under what circumstances would a monopolistic firm be economically more efficient than a group of small, competitive firms? If there are such monopolies, what are the drawbacks and how could they be corrected?
|
Construct payoff table for game-profits per firm as payoffs
: Assume that the demand for chalk is = 8 -0.1Q, where is the market price and is the total market output measured in thousands of boxes of chalk. Suppose that there are three firms in this industry, each of which has a constant variable cost of $2. Co..
|
Payoff tables and game forms
: How do these tools (payoff tables and game forms) help decision-makers to avoid incomplete thinking and over- inclusive thinking in their judgments?
|
The strategies-assumed to be same for both banks
: Two banks (Franklin and Lincoln) compete for customers in the growing city of Logantown. Both banks are considering opening a branch office in one of three new neighborhoods: Is there a pure strategy for this game? If so, what is it? If not, identify..
|
Orientation is the human resources function
: _______Orientation is the human resources function that
|
About the debt ceiling
: Let's talk about the debt ceiling. What have you heard about it? What does it mean? What was all the fuss about a few years ago? What about the government shutdown?
|