A market has the following demand function: P = 120 - where Qe = E-1 Qi a) Assuming Cournot-Nash market, fill in the table below when firm one has MC, = 10, firm two has MC, = 20 and firm three has MC, = 20. Additionally, there is no Fixed cost for none of the firms. b) Using data from the table below, explain the merger paradox when firms 2 and 3 merge. How the merged firm (firm 2 and 3) will be worse off? c) How would this outcome differ if all three firms merged?

A market has the following demand function: P = 120 - where Qe = E-1 Qi a) Assuming Cournot-Nash market, fill in the table below when firm one has MC, = 10, firm two has MC, = 20 and firm three has MC, = 20. Additionally, there is no Fixed cost for none of the firms. b) Using data from the table below, explain the merger paradox when firms 2 and 3 merge. How the merged firm (firm 2 and 3) will be worse off? c) How would this outcome differ if all three firms merged?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Just question 2.9
Could you specifically explain question (b), such as the process in detail and how you got the correct solution
How do I determine variable cost? Only typed solution
I need the answer as soon as possible
When comparing a gross lease to a NNN lease, some of the key differences being lower rent for the tenant at the risk of paying any additional cost out of pocket such as repairs. This would normally be the responsibility of the landlord as with a gross lease. Although the tenant has more control, this also means more risk for them and work of upkeep. This makes a NNN more beneficial for a landlord, and may explain why it’s more common on commercial properties. Residential tenants tend to give gross leases in case any expenses arise the situation will be covered without extra cost to the tenant. This is a discussion from one of my classmates I'm supposed to respond to their post it's only a discussion
The sum of the 2011 revenue and four times the 2008 revenue for a particular company is $3,489 4 million The difference between the 2011 and 2008 revenues is $145 9 million if the company's revenue between 2008 and 2011 is an increasing inear function, find the 2008 and 2011 revenues The 2008 revenue is $ million (Type an integer or a decimal)
Imagine a smartphone company has the following costs when they produce 200 phones: $50 in average fixed cost and $140 in average total cost. What would be the total variable cost for this company when they produce 200 phones? Type your numeric answer and submit
what is the terminology for this definition below: Year serving as point of comparison for other years
Hi! Help me with this please. Thank you so much! _______ refers to the cost which was spent but cannot be recovered anymore.
SOLVE STEP BY STEP IN DIGITAL FORMAT The company Cielito S.A. It manufactures clothing for older adults and has a large presence in Mexico, due to the comfort and good taste of its garments. It has 60 seamstresses who work 8 hours a day; Indirect manufacturing expenses are $9,500.00 MXN. Every day Cielito S.A. produces 1,500 garments. The cost per hour of labor is $55.00 MXN. With this data, you must calculate: a. Labor or labor productivity. b. The productivity of manufacturing indirect expenses. c. The total productivity of Cielito S.A.
What is meant by General Electric(GE)?
If the short run is 18 months does it follow that the long run is longer than 18 months?