PS11 - Econ 301 Intermediate Microeconomics Prof Marek Weretka Problem set 11(due Tuesday May 1st before class Problem 1(Oligopolistic Industry

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

View Full Document Right Arrow Icon
Econ 301 Intermediate Microeconomics Prof. Marek Weretka Problem set 11 (due Tuesday, May 1st, before class) Problem 1 (Oligopolistic Industry) Bud Light 36.8% Coors Light 19.1% Miller Lite 18.5% Natural Light 9.2% Busch Light 6.1% Michelob Light 3.3% Keystone Light 2.6% Millwaukee±s Best Light 2.3% Old Milwaukee Light 0.8% Miller Genuine Draft Light 0.7% The total light beer sales in 2000 amounted to 87 million barrels. a) Find the concentration ratio (a "big four" index) for the beer industry in the USA. b) Is such industry perfectly competitive or oligopolistic (concentrated)? Why? c) What in your opinion would be a reaction of the Trade Commission to a merger proposal by Bud Light and Coors Light? Why? Problem 2 (Aircraft industry) The jet aircraft industry is dominated by two major competitors: Airbus ( A - based in Europe) and Boeing ( B of $20 (in mln). Accordingly, their costs functions are given by
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.

This note was uploaded on 06/04/2011 for the course ECON 301 taught by Professor Hansen during the Spring '08 term at Wisconsin.

Page1 / 2

PS11 - Econ 301 Intermediate Microeconomics Prof Marek Weretka Problem set 11(due Tuesday May 1st before class Problem 1(Oligopolistic Industry

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