1.Consider a hypothetical firmoperating in ahypothetical market that you imagine.Name your firm as “A,”the others as “B”
Posted: Wed Apr 27, 2022 11:42 am
1.Consider a hypothetical firmoperating in ahypothetical market
that you imagine.Name your firm as “A,”the others as “B”, “C”, “D”,
...
2.Measure the market structure by assigning hypothetical market
shares to your firm and rivalfirms.Explain the concentration level
in the market.
3.Measure the industry-wide market power by
assigninghypothetical priceand costi nformation(please keep the
market share information on question #2).
4.Writedownthe cost function of your firm. Derive, average,and
marginal costs(please check that marginalcost is the same
inquestion #3).
5.Doesyourfirmexploit economiesof scale or economies of scope or
both? Show how by relying on your cost function in question #4?
6.(For this question,assume that your firm is a monopoly) Doyou
make price discrimination? Which type? Is it profitable rather than
applying a uniform price? Please show by defining hypothetical
demand functions(keepyour cost function on question #4).
7.(For this question,assume that your firm is a monopoly) What
type of product differentiation do you apply? Vertical or
horizontal?Please explain on a hypothetical demand curve(keep your
cost functionon question #4, develop it in case of vertical
differentiation)
that you imagine.Name your firm as “A,”the others as “B”, “C”, “D”,
...
2.Measure the market structure by assigning hypothetical market
shares to your firm and rivalfirms.Explain the concentration level
in the market.
3.Measure the industry-wide market power by
assigninghypothetical priceand costi nformation(please keep the
market share information on question #2).
4.Writedownthe cost function of your firm. Derive, average,and
marginal costs(please check that marginalcost is the same
inquestion #3).
5.Doesyourfirmexploit economiesof scale or economies of scope or
both? Show how by relying on your cost function in question #4?
6.(For this question,assume that your firm is a monopoly) Doyou
make price discrimination? Which type? Is it profitable rather than
applying a uniform price? Please show by defining hypothetical
demand functions(keepyour cost function on question #4).
7.(For this question,assume that your firm is a monopoly) What
type of product differentiation do you apply? Vertical or
horizontal?Please explain on a hypothetical demand curve(keep your
cost functionon question #4, develop it in case of vertical
differentiation)