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95 - 45 46 47 48 49 50 51 Know how to solve any problem not...

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Unformatted text preview: 45. 46. 47. 48. 49. 50. 51. Know how to solve any problem not from the book that we did in the homework. Know the difierence between economies of scope and scale, and be able to give examples of each know why for a monOpoly P > M0 at the optimal quantity and why in PC that P : MR for all quantities. Be able to show these things. Know how to solve a cartel problem with gov’t intervention. You should be able to write down the value equation, solve for V0, and tell me what is the minimum fine, or maximum beta so that firms would not want to form a cartel. I will not give you the formula, but I would recommend you know it: with gov’t intervention a cartel will be sustained if ,8 2 1-1ch _Hca.rtei+aSF (Helen _Hcournot)(1_fls) ’ Without gov’t intervention in a cartel, I expect you to be able to derive the condition for fl so that a cartel can be sustained. You do so using geometric series and the definition of the G.T.S. strategies. Know how to solve both types of models of mergers (vertical and hor— izontal) by backwards induction. anything i have said in class or assigned in reading is fair game. ...
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