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!
1. Demand for final output from the incumbent integrated firm is P = 64 - Q. Demand for final output produced by the entrant is P = 64 - Q - r where r is the reduction in the willingness to pay of consumers due to the inferior quality of access provided to the entrant. Production of thefinal good requires 1 unit of network access that has marginal cost of 4 and 1 unit of other stuff that also has a cost of 4 for both the incumbent and the entrant. The regulator requires that the integrated firm sell units of network access to all final-goods producers for the price w. Assume the following timing: (i) the network supplier sets the access price and then (ii) the final-good duopolists take the access price as given and competition between them is Cournot.
(a) Show that regardless of the transfer price, when the integrated firm competes in the final-good market it behaves as if its marginal cost is 8, not w + 4.
(b) Suppose that the integrated firm can change r at no cost. Determine the relationship between w and r such that the incumbent firm is able to monopolize the final-goods market.
(c) Suppose that w = 4. How much would the monopolist be willing to pay to set r such that it monopolizes the market for the final good?
Solve for the equilibrium output
Assume that the government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of action in the gasoline markets? Use graphs as needed and explain your answers thoroughly.
Determine the profit if 500 specialty pizzas are sold. Interpret your result and how many specialty pizzas would need to be sold to make a profit of $1,100? Interpret your result.
Presume there are two consumers, A and B. The utility functions of each consumer are given by: UA(X,Y) = X*Y UB(X,Y) = 2X + Y The initial endowments are: A: X = 4; Y = 2 B: X = 6; Y = 8. Is the initial allocation Pareto Efficient? What is the margina..
a cupcake store is located in a mall and is the only cupcake store in that mall.nbsp the demand schedule for cupcakes
We make choices as consumers every day. Opportunity cost is defined as a person's "next best alternative" or "the cost of what you give up when you make a choice."
The problem is from economics and it is describe whether the Federal Reserve being able to control fund rates by making changes in the interest rates is discussed in the answer.
explain why you would expect supply curves to slope upward on the basis of the principle of increasing opportunity
314 million people living in the United States.
The rate of our imports and exports has nearly quadrupled during past decade alone. Firms today are hiring, investing, buying, selling, increasing capital overseas among other things
Libertyville has two optometrists, Dr. Jones (J) and Dr. Smith (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below
Discuss the impact of long-term economic growth
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