Module 6_ Homework Assignment.pdf

# Suppose that you know the following information about

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Suppose that you know the following information about the potential buyers in the markets for two types of software for which your firm is a monopolist. You cost for producing the software is 0. Company ArkCorp BentonCo CalArk Delta-Ozarks Value of Software 1 2M 1M 3M 0 Value of Software 2 2M 2M 0 3M If you bundle the items, how much profit can you make? Select one: a. 6M b. 12M c. 10M d. 13M

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4/23/2018 Module 6: Homework Assignment 7/10 Question 11 Correct Marked out of 1.00 Question 12 Correct Marked out of 1.00 Question 13 Correct Marked out of 1.00 Use the following information for this problem. Suppose that you know the following information about the potential buyers in the markets for two types of software for which your firm is a monopolist. You cost for producing the software is 0. Company ArkCorp BentonCo CalArk Delta-Ozarks Value of Software 1 2M 1M 3M 0 Value of Software 2 2M 2M 0 3M If you sell the items separately, how much total profit can you make? Select one: a. 12M b. 6M c. 10M d. 13M 13M According to the Bertrand model, a firm will assume that rival firms will Select one: a. keep their prices constant b. match price increases but not price cuts c. match price cuts but not price increases d. keep their rates of production constant In the quantity leadership model: Select one: a. each firm takes the quantities produced by its competitors as given b. each firm takes the prices charged by its competitors as given c. one firm plays a leadership role and its competitor's simply react to the leader's quantity d. prices are higher and quantities are slightly less than we would see if the firms colluded to achieve the monopoly outcome
4/23/2018 Module 6: Homework Assignment 8/10 Question 14 Correct Marked out of 1.00 Question 15 Correct Marked out of 1.00 Question 16 Correct Marked out of 1.00 The Bertrand model is a more plausible model of firm behavior than the Cournot model Select one: a. because the Bertrand model predicts that firms will price at marginal cost. b. because firms that sell a non-differentiated product typically act as price takers. c. when firms sell a differentiated product.

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