Seminar 4 - Industrial Economics Week 16: beginning November 14th 2011 Price Competition and Bertrand Model Discussion Questions 1. Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by: Q = 5000 - 200P Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. a. What is the Bertrand-Nash equilibrium outcome? b. What are the profits for each firm? c. Is this outcome efficient
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University of Toronto Department of Economics (STG) ECO 204 2011 - 2012 Sayed Ajaz Hussain Lecture 1 © Sayed Ajaz Hussain‚ Department of Economics‚ University of Toronto‚ STG 1 Today About ECO 204 Motivational Example HBS Case: The Prestige Telephone Company Types of Optimization Methods in ECO 204 Unconstrained Optimization Evaluating change in optimal solution due to a small increase in a parameter Feedback? economics204@gmail.com © Sayed Ajaz Hussain‚ Department of Economics
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and explain your results. Submit your assignment in the drop box by using the Assignment Submission button. 1. What is the profit-maximizing price and output level? Solve this algebraically for equilibrium P and Q and also plot the MC‚ D and MR curves and illustrate the equilibrium point. Since the business has a patent over the item‚ it can act as a monopolist while determining its profit maximizing level of output and price. Business - General Business Market Structures and Pricing
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must be given equal importance 12MBA11‚ 12MBA12‚12MBA15 and 12MBA16 Q1- 3 + 7 +10 Q2- 3 + 7 +10 Q3- 3 + 7 +10 Q4- 5+5+10 Q5- 5+5+10 Q6- 5+15 or 10+10 Note: In 12 MBA 12‚ : One full question (all parts) consisting of simple problems from Mod 3 (Except Demand forecasting) and Mod 8 only to be set. Q7- a. b. c. d. 5X4 = 20 marks Q8. a. Theoretical model for analyzing case b. Sub question 1 c. Sub question 2 d. Sub question 3 5X4=20 Marks Theory+ Problem based courses (40% Theory + 60% Problems) 12MBA13&
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JUNE SEMESTER 2013 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Question 1 Read the following information and answer the questions below. I am all right‚ Son This report on an annual survey of consumers shows that economic and social factors can effect consumer’s tastes and the potential of advertisers to change them. Australians are still a confident lot‚ but we have become more inward-looking. Although 2001 was a year of disturbing events‚ here and overseas‚ Australians remain
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formulation which specifies the factors that influence the demand for the product a. Market demand b. Demand schedule c. Demand function d. Income effect 3. It is computed when the data is discrete and therefore incremental changes is measurable a. Substitution effect b. Arc elasticity c. Point elasticity d. Derived demand 4. Goods & services used for final consumption is called a. Demand b. Consumer goods c. Producer goods d. Perishable goods 5. The curve at which satisfaction is equal at each point a. Marginal
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compute the firm’s value. c. the price for which the firm can be sold minus the present value of the expected future profits. d. both b and c 2 A price-taking firm can exert no control over price because a. the firm’s demand curve is downward sloping. b. of a lack of substitutes for the product. c. the firm’s individual production is insignificant relative to production in the industry. d. many other firms produce a product that is nearly identical
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shape when compared to previous years. Companies have put a halt on adding capacity and are now more focused on filling the empty seats. This strategy is working out well as load capacity is up. This is even further enhanced by the strong growth in demand‚ which is a good sign for the industry as a whole. Throughout the industry there are many different strategies being implemented‚ from ones focused on price‚ to others focused on regional flights. One of the companies that has been able to utilize
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1.0 Introduction Recent year‚ brain drain issue once again becomes one of the hot discussed among the Malaysian. According to recent parliamentary report‚ approximately 140‚000 Malaysia left the country in 2007 while the figure was double up to 305‚000 between March 2008 and August 2009 as talented Malaysia pulled up stakes‚ apparently disillusioned by rising crime‚ a tainted judiciary‚ human right abuses‚ and outmoded education system and some other concern (Mariam‚ 2010). However according Asrul
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aggregate supply‚ aggregate demand‚ or some combination of them. A deep recession in the world economy decreases aggregate demand. A sharp rise in oil prices decreases short-run aggregate supply. The expectation of lower future profits decreases investment and decreases aggregate demand. b. Explain the separate effects of each event on U.S. real GDP and the price level‚ starting from a position of long-run equilibrium. A deep recession in the world economy decreases aggregate demand‚ which decreases real
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