2009ps6 - answer key

2009ps6 - answer key - BUAD 351 - Economic Analysis for...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
BUAD 351 - Economic Analysis for Business Decisions Homework 6 due: Tue 04/29/2009 PART (i): multiple choice question 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 answer c d c d b c d c a d c c a b c 1. Compare and contrast the Bertrand and Cournot models of oligopoly. Your discussion should competitive and monopoly outcomes). prices equal the marginal cost, thus replicating the perfectly competitive outcome. In the Cournot model, the &rms choose their output/capacity simultaneously and the market price clears the mar- ket. The equilibrium price is above the competitive outcome but below the monopoly outcome. As 2. Suppose you are a monopolist with a marginal cost MC ( Q ) = 4 and demand Q = 10 P: Suppose you could invest x dollars to reduce your marginal cost to MC ( Q ) = 2 : How much would you be willing to invest? At
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

2009ps6 - answer key - BUAD 351 - Economic Analysis for...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online