ECON 101 Lecture Notes - Lecture 11: Bayerischer Rundfunk, Best Response

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orchidpig108

20 Jul 2018

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If (cid:1829)=(cid:883), (cid:2870)=(cid:885), then which of these is a br for player 1: (cid:2869)=(cid:883, (cid:2869)=(cid:885, (cid:2869)=(cid:884, (cid:2869)=(cid:885) . Option d is the correct answer for this question (cid:1869)(cid:2869)(cid:4666)(cid:4667)=(cid:884)(cid:882) (cid:883)(cid:884), (cid:1869)(cid:2870)(cid:4666)(cid:4667)=(cid:884)(cid:888) (cid:883)(cid:884) (cid:1829)(cid:4666)(cid:1869)(cid:4667)=(cid:886)(cid:1869)(cid:2870)+(cid:883)(cid:884)(cid:1869)(cid:2870) Cost function is not linear i. e. ac and mc are not constant. (i) There are 10000 people in the population, each of whom is willing to pay at most for one unit of the good. Currently, both firms have (cid:1865)(cid:1829)=(cid:1827)(cid:1829)=(cid:887) (a) thinking about this scenario as a game. Question: suppose one firm adopt a technology that reduces its (cid:1865)(cid:1829) and (cid:1827)(cid:1829) to 3. How much is fir one willing to pay for this technology? (i) (ii) Players: {(cid:1858)(cid:1870)(cid:1865)(cid:883),(cid:1858)(cid:1870)(cid:1865) (cid:884)} (cid:1845){, [(cid:882), (cid:4667)},(cid:1829) {(cid:883),(cid:884)} ((cid:1828)(cid:1844),(cid:4666)(cid:2870)(cid:4667))[for same player ] (cid:1828)(cid:1844)(cid:2869)(cid:4666)(cid:2870)(cid:4667)=(cid:883)(cid:882), [(cid:887), (cid:4667), (cid:4666)(cid:2870),(cid:4667) (cid:2870) , (cid:887)(cid:883)(cid:882), (cid:2870)=(cid:887) whrn captures with =(cid:882) or not captures. Firm one undercuts firm two at a price where it is unprofitable for two to undercut price. (b) equilibrium (c)

Related Questions

1. Assume every buyer purchases only one unit of a product, which forms the market demand P = 650 - 20. The monopoly firm has constant marginal cost at 50 and zero fixed cost. You may find it useful to draw your diagram in part (d) as you work through this question. 1. (a) Show your step-by-step calculations of the profit-maximizing output Qs and price Ps, profits Ts, consumer surplus CSs, producer surplus PSs, and deadweight loss DWL, if this monopoly firm is the least powerful type of monopoly. (18 marks) ls 150 Ps 350 TS 45,000 CS 22,500 PS 45,000 DW Lộ 22,500 1. (b) Show your step-by-step calculations of the profit-maximizing output Qp, profits tip, consumer surplus Sp, producer surplus PSp, and deadweight loss DWLp if this monopoly firm is the most powerful type of monopoly. (15 marks) Op 300 Tp 90,000 0 PSp 90,000 DWL, 0 1. (c) Use your results to explain the trade-off between efficiency and equity when there is only one firm serving all the consumers in the market and it is not regulated by the government to protect the interests of the consumers. (7 marks) 1. (d) Plot all your results in a properly labeled diagram. (5 marks) 650 P = 350 MR D = MRP MC = AC Qs = 150 Qp = 300 = Qc Q

An amusement park, whose customer set is made up of two markets, adults and children, has developed demand schedules as follows:

The marginal operating cost of each unit of quantity is $5. Because marginal cost is a constant, so is an average variable cost. Ignore fixed costs. The owners of the amusement part want to maximize profits.

Price ($)	Quantity
Price ($)	Adults	Children
5	15	20
6	14	18
7	13	16
8	12	14
9	11	12
10	10	10
11	9	8
12	8	6
13	7	4
14	6	2

Calculate the price, quantity, and profit if: The amusement park charges a different price in the adult market

Please express your answers for Price and Profit in whole dollars (i.e.10.00)

Please use whole numbers for Quantity (i.e. 10, 27, 4)

*Price*	*Quantity*	*Total* *Revenue*	*Marginal* *Revenue*	*Marginal* *Cost*	*Total* *Cost*	*MR-MC*	*Profit*
	6	84		5	30		34
13		91	7	5	35	2	56
12	8	96	5	5	40	0
	9	99	3	5	45	-2	54
10		100	1	5	50	-4	50
9	11	99	-1	5	55	-6
	12	96	-3	5	60	-8	36
7		91	-5	5	65	-10	26
6	14	84	-7	5	70	-12
5	15	75	-9	5	75	-14	0

plumbuffalo582

In the data shown in the table below, Q is the total number of hamburgers sold, P is the average price charged for a hamburger, A is the dollar amount spent on newspaper ads for each week. Assume that household income and population did not change during this period. Using the data in Table 1,

1. Specify a linear functional form for the demand for hamburgers.

2. Using Excel (or other statistical software), run a regression to estimate the demand for hamburgers (Attach your output from the regression). and

3. Write your estimated demand equation for hamburgers.

week Q P A week Q P A

1 51,345 2.78 4,280 27 78,953 2.27 21,225

2 50,337 2.35 3,875 28 52,875 3.78 7,580

3 86,732 3.22 12,360 29 81,263 3.95 4,175

4 118,117 1.85 19,250 30 67,260 3.52 4,365

5 48,024 2.65 6,450 31 83,323 3.45 12,250

6 97,375 2.95 8,750 32 68,322 3.92 11,850

7 75,751 2.86 9,600 33 71,925 4.05 14,360

8 78,797 3.35 9,600 34 29,372 4.01 9,540

9 59,856 3.45 9,600 35 21,710 3.68 7,250

10 23,696 3.25 6,250 36 37,833 3.62 4,280

11 61,385 3.21 4,780 37 41,154 3.57 13,800

12 63,750 3.02 6,770 38 50,925 3.65 15,300

13 60,996 3.16 6,325 39 57,657 3.89 5,250

14 84,276 2.95 9,655 40 52,036 3.86 7,650

15 54,222 2.65 10,450 41 58,677 3.95 6,650

16 58,131 3.24 9,750 42 73,902 3.91 9,850

17 55,398 3.55 11,500 43 55,327 3.88 8,350

18 69,943 3.75 8,975 44 16,262 4.12 10,250

19 79,785 3.85 8,975 45 38,348 3.94 16,450

20 38,892 3.76 6,755 46 29,810 4.15 13,200

21 43,240 3.65 5,500 47 69,613 4.12 14,600

22 52,078 3.58 4,365 48 45,822 4.16 13,250

23 11,321 3.78 9,525 49 43,207 4.00 18,450

24 73,113 3.75 18,600 50 81,998 3.93 16,500

25 79,988 3.22 14,450 51 46,756 3.89 6,500

26 98,311 3.42 15,500 52 34,592 3.83 5,650

Assume you have the following demand function from above: Q = 100,000

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ECON 101 Lecture Notes - Lecture 11: Bayerischer Rundfunk, Best Response

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