MYECON LAB W/PEARSON ETEXT MICROECON>IP
9th Edition
ISBN: 9780134153988
Author: PINDYCK
Publisher: PEARSON
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Question
Chapter 11, Problem 15E
(a)
To determine
Optimal prices and profits when the goods are sold separately and as pure and mixed bundles.
(b)
To determine
Optimal pricing strategy for profit maximization with MC of $30.
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Consider a simple Bertrand market in which N=3 firms compete by setting prices. As long as they can purchase for less than 20, 10 million consumers select to buy the good from the cheapest firm, and break indifferences at random with equal probabilities if more than one firm set the lowest price. a- The three firms have equal marginal costs c1 =c2 =c3 =5. Derive the demand and payoff function of each firm i as a function of the prices in the market. b- What is the set of non-dominated strategies (or prices) for each firm? c- Derive the Nash Equilibrium of this game. d- How do total consumer surplus, welfare, and profits in the market change relatively to a- above if firm 1 becomes more efficient, and specifically if c1 =2<c2=c3=5
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There are two types of consumers in Melbourne: students and non-students. The student population is 10, and each student’s demand of printing paper is Q=1−P, for P<1.The non-student population is 40, and each non-student’s demand of printing paper is Q=3−P, for P<3. Suppose OfficeMax is the only seller of printing paper in Melbourne. Assume zero production cost.
Suppose OfficeMax cannot offer student discounts, and every customer has to pay the same price P. Derive the aggregate demand curve (for both students and non-students), and illustrate it in a diagram.
A monopolistic producer of two goods, 1 and 2, has a joint total cost function TC=10Q_(1)+Q_(1)Q_(2)+10Q_(2)
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P_(1)=50-Q_(1)+Q_(2)
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Chapter 11 Solutions
MYECON LAB W/PEARSON ETEXT MICROECON>IP
Ch. 11.A - Prob. 3ECh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQ
Ch. 11 - Prob. 10RQCh. 11 - Prob. 11RQCh. 11 - Prob. 12RQCh. 11 - Prob. 13RQCh. 11 - Prob. 14RQCh. 11 - Prob. 15RQCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17E
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