PS10 - Econ 301 Intermediate Microeconomics Prof. Marek...

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Econ 301 Intermediate Microeconomics Prof. Marek Weretka Problem set 10 (due Thursday, April 26th, before class) Problem 1 (Why monopolies exist) Give four examples of monopolistic industries. Explain what causes the monopoly in each case using the list from the second slide of Lecture 20). Problem 2 (Monopoly) Microsoft Corporation decides how many packets of the new operating system - Windows Vista it is going to F = $1000 . The variable costs of the packet is negligible C ( y ) = 0 . Microsoft±s inverse demand for the new operating system is given by p ( y ) = 100 y a) What are the total gains to trade in the market? What would the consumer and producer surplus be if areas. (Hint: don±t be surprised if one of the three variables is equal to zero). b) Assume that Microsoft cannot discriminate among its customers. Find geometrically and analytically
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This note was uploaded on 06/04/2011 for the course ECON 301 taught by Professor Hansen during the Spring '08 term at University of Wisconsin.

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PS10 - Econ 301 Intermediate Microeconomics Prof. Marek...

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