ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Answer key for Problem Set #1
Due in class October 1, 2013 (Tuesday)
Please type your answers except gures and equations. On your cover sheet,
please write down your name, student ID number, p
ECO380: Problem Set 2 - Suggested Solutions
1. (15 marks) [Stackelberg] Demand in a market is given by P = 3600.25Q, where Q is the total amount
of output. There are N rms that compete as in Stackelberg competition: they move sequentially, and
after obser
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Problem Set #1
Due in class October 1, 2013 (Tuesday)
Please type your answers except gures and equations. On your cover sheet,
please write down your name, student ID number, people you worke
UNIVERSITY OF TORONTO
Faculty of Arts and Science
October 2012 PROBLEM SET 1 ANSWER-KEY1
ECO380 - Managerial Economics I
Carlos J. Serrano
Question 1: Industry analysis [30 points]
Consider the following case study of the Dell Computer Corp., which you ca
UNIVERSITY OF TORONTO
Faculty of Arts and Science
December 2012 FINAL EXAMINATION
EC0380H1F
Duration - 3 hours
Non-programmable calculators are allowed
No other aids allowed
Instructions. PRINT YOUR NAME LEGIBLY ON YOUR ANSWER BOOK
LETS. ANSWER ALL QUESTI
Dynamic Games Intro
Stackelberg Model
Sequential Price Setting Models
Low Price Guarantees
Dynamic Games and the Stackelberg Model
Yao Luo
ECO380 - University of Toronto
Fall 2013
Stackelberg Games
ECO380 - University of Toronto
Dynamic Games Intro
Stacke
UNIVERSITY OF TORONTO
Faculty of Arts and Science
December 2010 EXAMINATION
ECO380F
Duration - 3 hours
Non-programmable calculators are allowed
No other aids allowed
Instructions. PRINT YOUR NAME LEGIBLE ON YOUR ANSWER BOOKLETS. ANSWER ALL QUESTIONS. Tota
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Answer key for Problem Set #2
Due in class October 29, 2013 (Tuesday)
Problem 1. There are two companies who oer tax return services in College Springs:
H & R Block and Bills Financial Service
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Problem Set #3
Due in class Novembr 26, 2013 (Tuesday)
Problem 1. TomsonBook is the monopoly publisher which produces the textbook
Corporate Economics. TomsonBook sells in two separate markets
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Term Test
Problem 1. Answer the following questions as best you can based on what you have
learned from the course. Partial answers will receive partial credit.
1. What is the N-rm concentrati
ECO380 Managerial Economics I: Competitive Strategy, Fall 2013
Problem Set #3
Due in class Novembr 26, 2013 (Tuesday)
You may submit handwritten homework assignments. Make sure your writing
is neat; illegible assignments will not be marked. Multi-page ass
ECO380 Markets, Competition, and Strategy, Fall 2014
Term Test
Read each problem carefully and answer each part as best as you can. Partial credit
will be given, so please show your work. Number each part of your answers. Each problem
may contain several
PU =
PC =
QU
QC
QU =
QC =
MC =
One factory
PU
PC
No Discrimination: same price in two markets
PU = PC = P
P<
P<
P2[ ,
]
P=
Q
P
Q=(
P<
MR(US) =
Q=
. P) + (
MR(both) =
1. Market
Q = 25 - 50/2 = 0 PQ
0P
Q = 50 - 100/2 = 0
Q
Q
. P) =
. P
P
P=
Q
PU =
=( .
M
ECO380: Tutorial Problem Set - For Tuesday, June 20th, 2017
1. [Auctions] Consider a third-price auction for a private value object. All of the bidders are risk-neutral,
and have values for the object that are drawn from the uniform distribution between 0
ECO380: Tutorial Problem Set - For Tuesday, October 4, 2016
Perfect Competition, Monopoly, and Third-Degree Price Discrimination
1. [1st Degree Price Discrimination] Suppose that there are two individuals, A and B, who purchase goods
from a monopolist. A'
Demand Curves
Perfect Competition
Monopoly
Surplus & E ciency
Perfect Competition and Monopoly
Yao Luo
ECO380 - University of Toronto
Fall 2015
Perfect Competition and Monopoly
ECO380 - University of Toronto
1. FOC
f(x) = a . x2+ bx + c
f(x) = 2ax + b
2.
ECO380: Tutorial Problem Set - For Tuesday, May 23, 2017
Third-Degree Price Discrimination, First-Degree Price Discrimination
1. [Monopoly-Kinked Demand, No Price Discrimination] Suppose there is a monopoly in a market whose
consumers are one of two types
Q=
A
B
P
B
P=A
BQ
= Revenue()
Cost()
= P(Q)Q
@
(Revenue
@Q
Cost) =
C (Q)
@
(Revenue)
@Q
@
(Cost) =
@Q
=
R(Q) = P(Q)Q
R 0 (Q) = P 0 (Q)Q + P(Q)
P(Q)
P 0 (Q)Q
P(Q) = A
(A
dR
dQ
=A
BQ
BQ)Q = AQ
BQ
!
BQ
MSB = MWTP = MC
P(Q) =
C (Q) = Q +
Q
= P(Q)Q
d
dQ
C
ECO380: Tutorial Problem Set - For Tuesday, November 6, 2016
Sequential-move games, Repeated games, and Collusion
1. [Stackelberg] Two rms compete in Stackelberg competition. They face a demand given by P =
240 2Q = 240 2(q1 + q2 ). Firm 1 moves rst, and
ECO380: Tutorial Problem Set - For Tuesday, September 27, 2016
Perfect Competition, Monopoly, and Third-Degree Price Discrimination
1. [Perfect Competition] Suppose there are 100 rms competing in perfect competition. These rms face
a market demand of
QD =
ECO380: Markets, Competition, and Strategy
Professor John McNeill
University of Toronto
Outline
:
Dierent auction variants may lead to the same outcome
Revenue equivalence theorems
Today:
Common value auctions
Matching markets
Last time
Next week:
Bou
ECO380 - Fall 2016
Prof. McNeill
Version 5
Extra practice problems (Finals edition):
In addition to the problems assigned in the tutorial sections, those on the problem set, and those found in
your textbook, here are some additional problems you could use
ECO380: Markets, Competition, and Strategy
Professor John McNeill
University of Toronto
So far: consumers have been fully rational, utility-maximizing
agents.
Typically, we have just made some (minimal) assumptions on their
demand curves.
We have not been
ECO380: Problem Set 1- Suggested Solutions
1. [Monopoly] Consider the following monopolists that face nonlinear demand functions.
(a) Suppose a monopolist faces a demand curve of Q = e100P , and has costs C(Q) = 4Q ln(Q).
Solve for equilibrium quantity an
ECO380 - Winter 2017
Prof. McNeill
Extra practice problems:
In addition to the problems assigned in the tutorial sections, those on the problem set, and those found in
your textbook, here are some additional problems you could use to help study for your E
ECO380 - Winter 2017
Prof. McNeill
Suggested Solutions:
The suggested solutions below are intentionally minimal; they are intended to help you judge whether you
have solved the problem correctly, not to teach you to solve the problem (that's what the lect
ECO380: Problem Set 2 - Suggested Solutions
1. (15 marks) [Stackelberg] Demand in a market is given by P = 3600.25Q, where Q is the total amount
of output. There are N rms that compete as in Stackelberg competition: they move sequentially, and
after obser
ECO380: Tutorial Problem Set - For Tuesday, June 13th, 2017
1. [Preventing Collusion] There is a market with demand given by P = 240 Q, where Q is the total
amount of output sold in this market. There are two rms in this market, each of which has a consta
U of T email address
@mail.utoronto.ca
Surname (last name)
Given name (first name)
Student number
Signature
UNIVERSITY OF TORONTO
Faculty of Arts and Science
ECO 380 (Markets, Competition, and Strategy)
Instructor: John McNeill
Midterm Test - Solutions
Ju
Si
!
i
NE
P=A
BQ = A
B(q + q )
c
q
P=A
q
Bq
A
Bq
Bq
) MR = (A
Bq )
Bq
MR = (A
Bq )
MR = MC ) (A
q =
A, c, B
A c
B
Bq
Bq )
Bq = c
q
q
q =
q =
A c
B
q
q =
A c
B
q
q =
q =
q =
A
c
A c
B
A
c
q
c
q
B
A
B
q
B
=
) q =
A
) q =
A
A
c
B
c
B
c
B
A
c
B
+
q
q = q =
Q
)
P=
C (Q) =
Q
Q
MWTP =
Q=
= MC
)Q=
P = MC
cs = ps = 4900
P=
C (Q) =
Q
Q
MWTP =
Q=
)Q=
1. p = mc, Q
PS=CS
R
(
Q)dQ =
MC*Q
2.
= MC
P=
C (Q) = Q
. Q
!
Z
(
Q)dQ =
compare to 18, more profit!
ex: 30 cs
sell more quantities, but keep same surplus for H+
(C
ECO380: Tutorial Problem Set - For Thursday, June 8th, 2017
Second-degree Price Discrimination
1. [Stackelberg] Two rms compete in Stackelberg competition. They face a demand given by P =
240 2Q = 240 2(q1 + q2 ). Firm 1 moves rst, and has a constant marg
ECO380: Tutorial Problem Set - For Thursday, May 25, 2017
Second-degree Price Discrimination
1. [Optimal 2nd Degree Price Discrimination] As promised in lecture, you will now show that under 2nd
degree price discrimination, the prot-maximizing menu of pac