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Go back to a manufacturing monopoly that produces items at a con stant unit cost k , and that must sell these units to retailers who sell the items at zero additional cost (beyond the cost the retailers incur to buy the items from the monopoly). Suppose there are two retailers, and they act according to Cournot conjectures. Demand is (what else) P = A - Q.
(a) Assume the monopoly charges retailers according to simple linear prices - at a price the monopoly sets. What is the optimal price for the monopoly to set?
(b) Suppose the monopoly can use a two-part tariff scheme, where it charges each retailer a fixed fee, plus a per unit charge for any units bought. What is the optimal pricing scheme for the monopoly?
(c) Now consider what will happen if the two duopolists compete with Bertrand conjectures.
Suppose that U = min{2X, 0.5Y}, where X is units of good X and Y is units of good Y. The price of good X is $1 and the price of good Y is $2. What is the minimum expenditure necessary to achieve a utility level of 100?
Which of the following is an example of an implicit cost for a firm?
Conduct research about the demographics of your community, for example the population size and average income per household and other independent variables, such as price of pizza and price of soda, for this assignment.
1. Describe Senator Reid's delivery style 2. What type of presentation is Senator Reid giving Is this the most effective style of presentation for this situation Why or why not
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Suppose the government regulates the price of a good to be no lower than some minimum level. Can such a minimum price make producers as a whole worse off? Explain.
Discuss the difference between the CPI measure of inflation as collected by the Bureau of Labor Statistics and the Billion Price Project (BPP), which is developed by researchers at MIT.
What are the differences? Among the factors that contributed to rapid economic development, are there any lessons that can be learned by other developing economies in the world?
suppose that an oligopolistic is charging 21 per unit of output and selling 31 units each day. what is its daily total
a normal demand curve is downwards identify four abnormal exceptional demand
Determine the profit maximizing price and quantity and socially efficient price and quantity and If the company is offered the contract, should it build the bridge? Why or why not?
your company bright paints is one of a dozen companies manufacturing a special reflective paint used for traffic signs.
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