Answer Happy

1. Consider a hypothetical firm operating in a hypothetical 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 rival firms. Explain the concentration level in the market. 3. Measure the industry-wide market power by assigning hypothetical price and cost information (please keep the market share information on question #2). 4. Write down the cost function of your firm. Derive, average, and marginal costs (please check that marginal cost is the same in question #3). 5. Does your firm exploit economies of 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) Do you make price discrimination? Which type? Is it profitable rather than applying a uniform price? Please show by defining hypothetical demand functions (keep your 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 function on question #4, develop it in case of vertical differentiation)