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- a) What is a tie-in contract and how does that differ from bundle pricing? b) What is a conglomerate merger and why are they more likely to be approved? c) Limit pricing is a strategy where a firm sets a low, but profitable, price to discourage entry. How does that differ from predatory pricing?ANS ME ! 1 In a completely serious market, the interaction of section or leave closes when a. Firms are working with abundance limit. b. Firms are making zero monetary benefit. c. Firms experience diminishing minimal income. d. Cost is equivalent to minor expense. 2. Harmony amounts in business sectors described by oligopoly is a. Lower than in imposing business model business sectors and higher than in completely serious markets. b. Lower than in imposing business model business sectors and lower than in completely serious markets. c. Higher than in imposing business model business sectors and higher than in completely serious markets.Assume that Intel and AMD are Duopoly (Oligopoly) in the global computer CPU market: a) Analyze the price and quantity supplied behavior of Intel and AMD using the Stackelberg model. Pick a leader and follower and describe the firms' price, quantity behavior using words. DO NOT draw graphs. DO NOT do any calculations. b) Will the price and quantity of the firms in part a change if you use the Cournot model? Describe using words. Compare the profits of 2 firms in the oligopoly in Cournot and Stackelberg models using a graph of profit possibility frontier.
- Provide an example of a company which operates on market as two one- sided platforms, describe sides and network effects.Economics An industry consists of three firms with sales of $25, $45, and $55.a. Calculate the Herfindahl-Hirschman index (HHI).Instruction: Enter your response rounded to the nearest integer. b. Calculate the four-firm concentration ratio (C4). c. Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $25 and $45? Plz solutions part B and CTwo takeaway restaurants, ChipAhoy and FishDish, compete for business in a small seaside town. The manager of ChipAhoy has engaged you to advise on the pricing of its main offering, a fish & chips supper. Your intention is to analyse the situation as a twoplayer competitive game. After making background investigations, you have decided to adopt the following assumptions in your analysis. A1 The cost of the producing and serving a portion of fish & chips is the same for both restaurants: £3.50.A2 In a typical week, holidaymakers buy a total of 1500 portions of fish & chips, and local residents buy 1000 portions.A3 Local residents always choose the restaurant with the lower price. If prices are the same at the two restaurants, their custom is divided equally between the two. A4 Holidaymakers divide their custom 50:50 between the two restaurants, irrespective of the prices. Derive the Nash equilibrium/equilibria for the game
- An industry consists of three firms with sales of $205.000, $745.000, and $305,000. a. Calculate the Herfindahl-Hirschman Index (HH). Instruction Enter your response rounded to the nearest integer 16.66 Calculate the four-firm concentration ratio (Ca Based on the FTC and DOJ Horizontal Merger Guidelines described in the text, is the Department of Justice likely to attempt to block a horizontal merger between two firms with sales of $205,000 and $305,000? Yes O NoIn which market structure does Johnson Electronics (Pty) Ltd operate? Provide areason for your answer and what level of output maximizes the firm’s profit? Provide the reason for youranswer output price total revenue average cost total cost margnial cost profit/ loss 10 10.00 100 20.80 208 0 -108 20 10.00 200 12.40 248 4.00 -48 30 10.00 300 9.90 297 5.00 3 40 10.00 400 9.00 360 6.20 40 50 10.00 500 8.80 440 8.00 60 60 10.00 600 9.00 540 10.00 60(Collusive Duopoly Model) There are two firmsproducing widgets. It costs the first firm q1 dollars to produceq1 widgets and the second firm 0.5q2 2 dollars to produce q2widgets. If a total of q widgets are produced, consumerswill pay $200 q for each widget. If the two manufacturerswant to collude in an attempt to maximize the sum of theirprofits, how many widgets should each company produce?
- 3 1. Describe the bidding process by which the electricity generation sector provides electricity to pooling and balancing authorities. Additionally, show this process by building an electricity supply curve. a. What antitrust and regulation concerns are present at the wholesale stage of the electricity market? b. Describe a market design that reduces market manipulation in wholesale electricity markets. Show that the Nash equilibrium under this market design will result in generators bidding their true marginal cost of production. c. Describe a vertically integrated industry as it pertains to the electricity sector. d. Describe non-linear (two part) pricing as it pertains to retail electricity sales. What is the purpose of this pricing system?1.-There are only two firms in the market, Firms A and B, producing differentiated products. Specifically, the demands for the two firms' products are given by qA = 30 − 2pA + pB and qB = 15 − 2pB + pA, where pi denotes the price charged by Firm i and qi denotes the resulting number of units that will be purchased from Firm i. Each firm can produce as much as it chooses, at zero marginal cost. The firms compete with one another in prices. (a) Draw the two firms' reaction functions in a diagram with p1 and p2 on the axes. (b) Determine the equilibrium prices and quantities.1) A customer's "Willingness to Pay" should always be below the price that is being charged by the firm in the industry. a) True b) False c) Depends d) Doesn't matter 2) We find that the margins of Microsoft and Intel are higher compared to the PC manufacturers, we find that that Apple takes a very high margin on sale of mobile application by individual developers for the iOS platform. What are the underlying forces in these two scenario respectively? a) Complementor and Substitute b) Supplier and Complementor c) Competitor and Supplier d) Substitute and Competitor