1. Consider a hypothetical firm operating in a hypothetical market that you imagine. Name your firm as “A,” the others a

[answerhappygod]

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)