Bright Lights Company merges with its supplier, LED Pro Parts, in an effort to have a constant supply of high-quality LED chips for its light bulbs. This is an example of a Multiple Choice shark repellent. vertical merger.
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- Blue Origin must decide about entering the space travel market but ignores if SpaceX, the monopolist in the sector, is efficient or not. If SpaceX is efficient, it has zero marginal costs and gains 18.8 in a monopoly and 6.3 in a duopoly. If it is inefficient, its marginal costs increase to 5 and gains are 8.3 in a monopoly and 4 in a duopoly. Should Blue Origin enters the market, it would gain 27 if SpaceX is inefficient and lose 3.8 otherwise. The demand function is p = 15 - 3*q. To signal its nature in the first period, SpaceX should produce 02 O O 5 8In the mobile phone market, Samsung and Apple constitute a duopoly in the production of devices.The American firm has the following demand q_a = 10 - p_a + 0.25p_s, and the Korean firm, q_s = 20 -p_s+ 0.5p_a. Because both firms assembly their devices in China, their cost structure is the same andequal to ?(q) = 10q, answer the following questions.a) What would be the equilibrium (quantity, price, and profit) in this market, and interpret youranswer.b) If they decide to form a cartel, what are the new quantities, prices, and profits?The price elasticity of demand for melocotones is constant and equal to -2. The melocotone market is controlled by two Cournot duopolists who have different cost functions. One of the duopolists has a constant marginal cost of $975 per ton and produces 70% of the total number of melocotones sold. The equilibrium price of a ton of melocotones must be Group of answer choices $1,500. $750. $975. $3,000. $2,250.
- Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3. The marginal cost of producing the product is constant at $225, while average total cost at current production levels is $315. Determine your optimal per unit price if: a. You are monopolist b. You compete against one other firm in a Cournot oligopoly c. You compete against 19 other firms in a Cournot oligopolyAre Covid-19 rapid antigen tests a Monopoly, oligopoly or a perfectly competitive marketPRICE (Dollars per can) 2.00 1.80 1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0 0 Demand 5 MR 10 15 20 25 30 35 40 QUANTITY (Thousands of cans of beer) MC = ATC 45 50 Monopoly Outcome When they act as a profit-maximizing cartel, each company will produce information, each firm earns a daily profit of $ cans and charge $ , so the daily total industry profit in the beer market is $ per can. Given this Oligopolists often behave noncooperatively and act in their own self-interest even though this decreases total profit the market. Again, assume the two companies form a cartel and decide to work together. Both firms initially agree to produce half the quantity that maximizes total industry profit. Now, suppose that Mays decides to break the collusion and increase its output by 50%, while McCovey continues to produce the amount set under the collusive agreement. to $ Therefore, you can conclude that total industry profit Mays's deviation from the collusive agreement causes the price of a can of…
- Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is −3. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175.Determine your optimal per unit price if:Instructions: Enter your responses rounded to two decimal places.a. you are a monopolist. b. you compete against one other firm in a Cournot oligopoly. c. you compete against 19 other firms in a Cournot oligopoly.Rainbow Wer-Odeon Bargaining Game Rainbow Reeder Rep S O St O O PH M Rainbow Writer (RW) is a small online company selling a highly rated software package for printing color labels directly onto CDs. The firm currently earns a profit of $2 million per year selling its package exclusively on its Web site. Odeon, the producer of the most popular software package for editing and burning CDs and DVDs has expressed interest in bundling Rainbow Writer's product into its own package. Odeon expects that bundling would further boost its sales and allow it to sell the new bundled product at a higher price, thus raising its profits beyond its current profit of $12 million. Figure 5 shows the decision tree for the Rainbow Writer-Odeon bargaining game. Refer to Figure 5. How will Rainbow Writer respond to Odeon's two possible offers? O Rainbow Writer will only accept an offer of $40 per copy of the software package. O Rainbow Writer will only accept an offer of $30 per copy of the software package.…A cartel is: O the name for firms in any oligopoly market. O a group of firms using preemptive strategies. a collusive organization. an oligopolist that competes with other oligopolists. a group of firms using price leadership.
- Consider a market with a duopolist structure. Each firm has similar marginal costs. Based on this information, we can conclude that: ProfitsDeceit > ProfitsCollusion > ProfitsDuopoly > ProfitsTrust in collusion ProfitsDeceit > ProfitsDuopoly > ProfitsCollusion > ProfitsTrust in collusion ProfitsDeceit > ProfitsTrust in collusion > ProfitsDuopoly > ProfitsCollusion ProfitsCollusion > ProfitsDuopoly > ProfitsDeceit > ProfitsTrust in collusionPlace the black point (plus symbol) on the following graph to indicate the profit-maximizing price and combined quantity of output if Mays and McCovey choose to work together. 2.00 Demand 1.80 Monopoly Outcome 1.60 1.40 MC = ATC 1.20 1.00 0.80 0.60 0.40 0.20 MR 90 180 270 360 450 540 630 720 810 900 QUANTITY (Cans of beer) PRICE (Dollars per can)Q42 Tha use of cannabis was legalized in Canada in 2017. The cannabis sector (Industry X) and the production of fertilizers used in growing cannabis (Industry Y) both have four-firm concentration ratios of 82 percent, but the Herfindahl index for X is 4,056, while that for Y is 3,975. These data suggest Multiple Choice both industries are experiencing X-inefficiency. greater market power in Y than in X. greater market power in X than in Y. that price competition is stronger in X than in Y. both industries are monopolistically competitive.
