Reference no: EM132276913

Explain answers

1. When a brand name drug's patent protection expires, many generic producers are usually ready to enter the market. These firms' products are close substitutes, they have similar production technologies, the regulatory hurdles to enter are not so great, and, within a few months, there are plenty of rivals. What would you predict for the profitability during these first few months after generic drug entry? Please show and explain using a diagram similar to the handout from class. (Assume the MC is constant)

2 Technological improvements in hydraulic fracturing, or "Fracking," have decreased the cost of extracting smaller pockets of natural gas. What affect does this have on supply and demand as well as on the equilibrium price and quantity for natural gas?

3 Utility companies can use a mix of plants different energy sources to produce electricity, mainly these are coal fired plants but increasingly they relying on gas turbines. Technological improvements in hydraulic fracturing, or "fracking," have decreased the cost of extracting smaller pockets of natural gas. What affect does fracking have on supply and demand for coal?

4. Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by one unit, your costs decrease by $5. The first unit costs you $50 to produce. If you receive a request for proposal (RFP) on a project for five units, what is your break-even price? Suppose that if you get the contract, you estimate that you can win another project for two more units. Now what is your break-even price for those two units?

Quantity	Marginal Cost	Total Cost	Average Cost
1	$50	$50	$50
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During the summer, the classrooms and dormitories at The College of Saint Rose are mostly empty. Explain how the situation might be fixed to The College's advantage. Some argue that offering discounted classes and living costs in the summer would cannibalize fall and spring enrollments. Comment.

Visit UAlbany'sAthletics page. The men's lacrosse team plays Yale in April. Explain a direct price discrimination technique and an indirect price discrimination technique used. Also comment on the yield management technique being used.