2008ps5

2008ps5 - BUAD 351 Economic Analysis for Business Decisions...

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BUAD 351 - Economic Analysis for Business Decisions Homework 5 due: Mon 04/28/2008 PART (i): multiple choice please provide the answers in the following box: question answer 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 cost. a. true b. false 2. Monopoly occurs for several reasons, including a. invention and patent of a new product. b. economies of scale. c. ownership of a critical resources. d. All of the above a. maximized. b. zero. c. una±ected. d. increased. 4. If a monopolist charges di±erent prices to two di±erent groups of consumers, we can always conclude that the monopolist is practicing price discrimination. a. True b. False 5. Self-selection strategies induce the high demand customers to buy the plan that is designed to extract surplus from them, instead of opting for the plan designed for low demand customers. a. True b. False 6. In the Bertrand model with symmetric costs, the Nash Equilibrium occurs when d. none of the above 1
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7. The Cournot model a. is useful for analyzing situations where &rms make capacity or inventory decisions that deter- mine the quantity available for sale. b. implies that price will exceed marginal cost. c. has a Nash Equilibrium. d. all of the above 8. Antitrust laws address two issues a. collaboration among competitors b. exclusion from the market c. both a and b d. none of the above a. Its marginal revenue must equal its marginal cost at that quantity b. Its marginal revenue must exceed its marginal cost at that quantity c. Its marginal revenue must be less than its marginal cost at that quantity d. Its marginal revenue must be equal to zero a. Is the amount by which its price exceeds its marginal cost, expressed as a percentage of its price b. Is the amount by which its marginal cost exceeds its average cost
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2008ps5 - BUAD 351 Economic Analysis for Business Decisions...

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