Name:_
Cornell NetID:_
TA Group No:_
AEM 2600 Managerial Economics
Prelim #2
October 31, 2013
1.)
Total Points: 40
Simultaneous and Sequential Cournot (13 points)
You are given the following market demand

Escape From Bertrand
And other short term pricing
considerations
1
Todays Agenda
Escape from Bertrand
Firm Heterogeneity
Product Differentiation
Capacity Constraints
Leader/Follower Model (Sequential Game)
Bertrand
Cournot
Cornell University
2
Firm Hetero

ConradAmbroise:ManagerialEconomicsProblemSet1
February26,2014
1.
a. FV = PV (1+r)^t
Given this equation, the future value of buying La Boulange is less than the future value of internally
developing a range of products similar to the products La Boulange

Question 1
A)
Hertz has already been very successful compared to competitors like Avis, in the
airport car rental industry where Hertz owns 28% of the airport car rental market.
To further differentiate successfully from its competitors, Hertz must utiliz

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NetID:
Group No:
AEM 2600 Managerial Economics
Problem Set #2 Due October 10th
Please show your work!
1.)
(8 POINTS)
You are given the following market demand curve and the total cost functions of two
companies:
whereas
a) Given that the two firms c

Name:
NetID:
Group No:
AEM 2600 Managerial Economics
Problem Set #3 Due October 24th
Please show your work!
1.)
You are buying a car at a new and used car dealership. In the process of negotiation, you
narrow down your choices to two. You can buy a used c

AEM 2600 Managerial Economics
Problem Set #4 Due November 15th
Please show your work!
1.) There are five firms in an the solar panel industry. The whole industry sells 8,000 solar panels
split among the fi

Practice Problems for Prelim2
1.)
You are given the following market demand curve and total cost functions of two companies:
, where
a) Given that the two firms compete for market share through deciding on their production
quantities, please estimate the

AEM 2600 Managerial Economics
Practice Problems
1)
You are given the following quadratic total cost function of a firm in perfect competition.
This means the firm is a price taker in its market.
a) The market price is . What quantity does the firm sell to

AEM 2600 Managerial Economics
Practice Problems
1)
You are given the following quadratic total cost function of a firm in perfect
competition. This means the firm is a price taker in its market.
= 200,000 + 102
a) The market price is = 2,000 . What quant

AEM 2600 Practice Problem 2
1.)
You are given the following market demand curve and total cost functions of two companies:
, where
a) Given that the two firms compete for market share through deciding on their production
quantities, please estimate the re

Name:
NetID:
Group No:
AEM 2600 Managerial Economics
Problem Set #2 Due October 10th
Please show your work!
1.)
(8 POINTS)
You are given the following market demand curve and the total cost functions of two
companies:
whereas
a) Given that the two firms c

AEM 2600
Practice Problem Set3
1.)
You are a monopolist selling a good in two markets, China and Brazil. Your marginal cost in
production is equal to 4$. You face the following demands in the two regions:
China
Brazil
a) Suppose you charge a separate pric

Name:
NetID:
Group No:
AEM 2600 Managerial Economics
Problem Set #3 Due October 24th
Please show your work!
Total points: 20
1.)
You are buying a car at a new and used car dealership. In the process of negotiation, you
narrow down your choices to two. You

AEM 2600 Managerial Economics
Problem Set #4 Due November 15th
Please show your work!
1.) There are five firms in an the solar panel industry. The whole industry sells 8,000 solar panels
split among the fi

Profits: a roadmap
Two "benchmark" cases
Perfect competition ("price taking")
Pure monopoly ("price setting")
How to maximize profits - in both cases, increase quantity as long as MR > MC
Perfect competition: Marginal Revenue = p
Monopoly: MR = dTR/

Managerial Economics
AEM 2600: Problem Set 1
Due: 9/13/2016
AEM 2600: Problem Set 1
Due date: 13th Sept, 2016 (Tuesday) IN CLASS
Please Note:
Please write your Name, Net ID, Student ID # clearly.
Please show your work clearly!
Questions
1. A potential ent