Reference no: EM13241814
Assume that the marginal cost to Microsoft of supplying its operating system for one more computer is zero. Denote by PM the price charged by Microsoft for its operating system.
Various computer manufacturers produce homogenous computers. Cost of production per computer is equal to $1000 + PM where the $1000 captures other computer component costs, such as the microprocessor, monitor, etc. Finally, assume that the downstream computer industry is perfectly competitive and aggregate demand is given by Q = 50,000,000 - 10,000P .
a. For any given price, PM , of operating systems, what will be the price and sales of computers?
b. What price PM should Microsoft set for its operating system? How much money will downstream manufactuers make? What will be the final price of a computer?
c. How much money would a vertically integrated firm controlling both the supply of Windows and the assembly of computers make? What price would such a firm charge for its computers?
d. Should Microsoft integrate downstream with computer manufacturers?
|
Formulate a hypothesis related to statement
: Why, in my day, kids were much more respectful and didn't cause as much trouble as they do nowadays!" Formulate a hypothesis related to statement that you could test. How would you test it?
|
|
A historical analysis of urban planning in the united states
: A clear thesis statement An annotated bibliography for at least 10 scholarly or professional journal articles A summary that expresses the overall plan of the paper, including subtitles and topic sentences for each subtitle provided.
|
|
Calculate the electric potential energy
: The liquid-drop model of the atomic nucleus suggests high-energy oscillations of certain nuclei can split the nucleus into two unequal fragments plus a few neutrons, Calculate the electric potential energy (in electron volts) of two spherical fragm..
|
|
Indicate the probable motivation for rpm
: The fashion (clothing), consumer electronics, fine fragrance industries are knwon to practice or have practiced resale price maintenance. In each case,indicate the probable motivation for RPM and the likely welfare consequences.
|
|
How much money will downstream manufactuers make
: Various computer manufacturers produce homogenous computers. Cost of production per computer is equal to $1000 + PM where the $1000 captures other computer component costs, such as the microprocessor, monitor, etc.
|
|
Find the time constant of the circuit
: A capacitor is charged to a potential of 12.0 V and is then connected to a voltmeter having an internal resistance of 3.10M, What is the time constant of the circuit
|
|
What is the difference between customer satisfaction
: What is the difference between customer satisfaction and customer loyalty? Why is it important to distinguish between these two concepts?
|
|
Determine at what level of output does smc equal avc
: Use a computer regression package or Excel to work this computer exercise. Palm Products Company has collected data on its average variable costs of production for the past 12 months.
|
|
Find the maximum speed achieved by the sphere
: Two plastic spheres, each carrying charge uniformly distributed throughout its interior, are initially placed in contact and then released, Find the maximum speed achieved by the sphere of mass 50.0g
|