ECON 4301FALL 2013
Problem Set 3: due November 8
Problem 1 (15 points)
The Sea Front restaurant in Oceansville oers only two items in its menu. The rst is a dish
of its superb Atlantic salmon. The second is a slice of its delicious cherry pie. A customer
ECON 4301-Fall 2013
Vertical Mergers
Kostas Metaxoglou
November 29, 2013
slide: 1/43
Agenda
The material is from PRN Chapter 17
slide: 2/43
Introduction
In the fall of 2000, GE and Honeywell announced that would merge
with GE acquiring Honeywell. For the
The following shows the three types of questions that will be asked in the mid-term exam, just to give
you a sense of what they are, what level of detail in the answers are expected.
1. Define what is meant by the term price discrimination. Be brief in yo
ECON 4301 Practice Problems 1
Problem 1
Suppose that the demand for plastic hangers is P = 3 Q/16, 000. Suppose further that
the marginal cost of producing hangers is constant at $1.
a. What is the equilibrium price and quantity of hangers if the market i
ECON 4301 Practice Problems 1
Problem 1
Suppose that the demand for plastic hangers is P = 3 Q/16, 000. Suppose further that
the marginal cost of producing hangers is constant at $1.
a. What is the equilibrium price and quantity of hangers if the market i
Problem Solving Questions (2)
1. Suppose P = 10 0.1Q
q1 = q2 = q3 = 20
Q = 60 P = 4
MC1 = MC2 = MC3 = 2
Calculate Herfindahl-Hirschman Index and Lerner Index.
2. Suppose a merger happens and now there are two equal
sized firms, calculate the after-merger
Econ 4302 Practice questions.
In preparing for the final exam, here are a bunch of sample questions, in roughly the proportion you
could expect. You will be asked to answer 7 of 10 TFU questions, and 3 of 5 longer answer questions.
True/False/Uncertain
1.
ECON 4301: Practice Problems 4
Problem 1
DelIceCon is considering selling its delicious ice-cream cones using stands along Hot Beach,
which is 5 miles long. According to its estimates, there are 1,000 sunbathers evenly spread
along the beach and the each
ECON 4301: Practice Problems 3
Problem 1
The table below gives the reservation prices of three consumer types (A, B, C) for wine
tasting at three restaurants (1, 2, 3) operated by GreatFood.
Consumer R1 R2 R3 Bundle
A
$12 $5 $8
$25
B
$7 $10 $10
$27
C
$8 $
ECON 4301 Practice Problems 2
Problem 1
A monopolist serves two markets with demand curves P1 = 160 8Q1 and P2 = 80 2Q2
facing M C = 5 + Q.
a. Find the optimal prices and quantities assuming third-degree price discrimination.
b. Find the optimal price and
ECON 4301: Practice Problems 5
Problem 1
It is common to find industries in which there is a dominant firm, as well as some smaller
fringe firms. For example, Intel has dominated for many years the market for microprocessors. In a market with a dominant f
ECON 4301 A Market Structure and Firm Behavior
Department of Economics
Carleton University
Student Name
Student ID
Assignment No
Problem
1
2
3
4
5
Total
1
Points
ECON 4301A Assignment 4: due Mar-24
Attach the cover sheet provided in the 1st page and stapl
ECON 4301 A Market Structure and Firm Behavior
Department of Economics
Carleton University
Student Name
Student ID
Assignment No
Problem
1
2
3
4
5
6
Total
1
Points
ECON 4301A Assignment 3: due Mar-10
Attach the cover sheet provided in the 1st page and sta
ECON 4301 A Market Structure and Firm Behavior
Department of Economics
Carleton University
Student Name
Student ID
Assignment No
Problem
1
2
3
4
5
6
7
Total
1
Points
ECON 4301A Assignment 1: due Jan-20-2017
Attach the cover sheet and staple your pages tog
ECON 4301 A Market Structure and Firm Behavior
Department of Economics
Carleton University
Student Name
Student ID
Assignment No
Problem
1
2
3
4
5
6
Total
1
Points
ECON 4301A Assignment 1: due Jan-26-2016
Attach the cover sheet and staple your pages toget
1.
a
b
TC ( q )=q 2+100
T C ' =2 q= p=MC ( q )
p=60 q=30
2
TC ( 30 )=30 +100=1000
c Supply curve of each firms is
MC ( q )=2 q= p q s=
p
2
d Supply curve of industrial is
p
MC ( q )=100 =50 p
2
2
a The C R4 for this industry =30+20+12+10=72
b The HHI for
ECON 4301-Fall 2013
Introduction
Kostas Metaxoglou
September 6, 2013
slide: 1/16
Plan for today: ease into the class!
I will introduce myself
I will then talk a little bit about logistics
A gentle introduction to the class will follow
Will start with Chap
Monopoly: prot maximization example
We know that prot maximization implies
P(Q) + P (Q)Q = C (Q)
(12)
We can write the equation above as follows
P(Q) C (Q) = P (Q)Q
(13)
Divide both sides with P(Q) to obtain
P (Q)Q
1
P(Q) C (Q)
=
=
P(Q)
P(Q)
| D |
(14)
Th
ECON 4301-Fall 2013
Commodity bundling and tie-in sales
Kostas Metaxoglou
October 11, 2013
slide: 1/41
Agenda
The material is from PRN Chapter 8
slide: 2/41
Introduction
Among other things in Microsoft, the judge concluded that the Windows
O/S and the Int
ECON 4301-Fall 2013
Price Competition
Kostas Metaxoglou
October 25, 2013
slide: 1/20
Agenda
The material is from PRN Chapter 10
slide: 2/20
Introduction
In a wide variety of industries, rms compete in prices
e.g., Internet access, restaurants, nancial ser
ECON 4301-Fall 2013
Horizontal Mergers
Kostas Metaxoglou
November 22, 2013
slide: 1/31
Agenda
You will receive an online invitation email on Nov-25 regarding
teaching evaluation for this class
I would greatly appreciate if you submit an evaluation
it w
ECON 4301-Fall 2013
Static Games and Cournot Competition
Kostas Metaxoglou
October 25, 2013
slide: 1/36
Agenda
The material is from PRN Chapter 9
slide: 2/36
Introduction
Most markets are oligopoliesthey are characterized by a small
number of competitors
ECON 4301-Fall 2013
Price Discrimination and Monopoly: Linear Pricing
Kostas Metaxoglou
September 20, 2013
slide: 1/32
Agenda
Discuss material from Chapter 5 in PRN
slide: 2/32
Introduction
Here are some casual observations about prices
Many prescription
ECON 4301A-Fall 2013
Mid-term Exam
October 18, 2013
Student Name :
Student Number :
Instructions
1. There are 6 questions for a total of 100 points
2. Read carefully before you provide your answers
3. Show all your work. Random guesses will receive NO cre
ECON 4301FALL 2013
Problem Set 4: due November 29
Problem 1 (20 points)
Two rms play a Stackelberg game facing a market demand curve P = 26 Q. Firm 1 is
the leader and Firm 2 is the follower. They incur no xed costs.
a (10). Assume that rm 1 faces constan
ECON 4301-Fall 2013
Price Fixing and Repeated Games
Kostas Metaxoglou
November 15, 2013
slide: 1/35
Agenda
The material is from PRN Chapter 14
slide: 2/35
Introduction
Figure 1 : International Cartels with US DOJ nes exceeding $100m
Cartel
Industry
Period
ECON 4301-Fall 2013
Dynamic Games and First and Second Movers
Kostas Metaxoglou
November 8, 2013
slide: 1/23
Agenda
The material is from PRN Chapter 11
slide: 2/23
Introduction
We will discuss dynamic games in which players move sequentially
Dynamic games
ECON 4301-Fall 2013
Basic Microeconomics
Kostas Metaxoglou
September 6, 2013
slide: 1/28
Agenda
Discuss material from Chapter 2 in PRN
Review some basic notions of microeconomics
Discuss perfect competition
Discuss some basic results from monopoly
slide:
ECON 4301-Fall 2013
Market Structure and Market Performance
Kostas Metaxoglou
September 13, 2013
slide: 1/23
Agenda
Discuss material from Chapter 3 in PRN
Market structure
Concentration measures
Market power
The Lerner Index
slide: 2/23
Introduction
There
ECON 4301-Fall 2013
Technology and Cost
Kostas Metaxoglou
September 20, 2013
slide: 1/27
Agenda
Discuss material from Chapter 4 in PRN
slide: 2/27
Production function technology and cost functions
We will rst consider single-product rms
We start by dening