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Producer of telecommunications in an economy

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Reference no: EM131587159

Question 1

The earthquake in japan did considerable damage to the sake wine industry and the nations supply of wine decreased as a result. the stress of the earthquake increased the demand for sake and other alcoholic beverages. Use the graphical method to analyse how the change in demand and supply affected the equilibrium quantity and price of sake.

  • Assume that change in demand is more than change in supply.
  • Assume that the change in supply is more than the change in demand.
  • Compare and analyse the results of both cases.

Question 2

Imagine a firm which is the only producer of telecommunications in an economy.

  • In your opinion what are the characteristics of this market?
  • Discuss the profit maximizing strategies for this firm, with the support of a graph.
  • Explain the price discrimination methods practiced by this firm with suitable examples.

Reference no: EM131587159

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