PArt C D E last parts Question #6: Dell and Sony compete primarily by price. Each firm must choose either a highprice or a low price simultaneously. Use the following information to create the profit matrix:1. If Sony and Dell both set high prices, Dell's profit is $40 million and Sony's profit is $35million.2. If Dell sets high price and Sony sets low price, Dell's profit is $25 million and Sony's profit is$40 million.3. If Dell sets low price and Sony sets high price, Dell's profit is $50 million and Sony's profit is$10 million.4. If Dell and Sony set low prices, Dell has $20 million and Sony has $15 million.Please answer the follow questions:a. Does Sony have a dominant strategy? Dell? If so, which one?b. If Dell and Sony maximize their profits non-cooperatively, what is the Nash-equilibrium for thisgame?c. Instead, if Dell and Sony maximize their joint profits cooperatively for one year, what is the|equilibrium?d. Would your answer in part c above be different if Dell and Sony jointly maximize their profitsfor ten years, or indefinitely?e. From the policy maker standpoint who wants to maximize national welfare (ie consumersurplus and producer surplus), would you prefer Sony and Dell to cooperate or not to cooperateto set prices? Please explain why.

Introduction Dell and Sony compete primarily by price. Both company will get more profit when they…

c. Instead, if Dell and Sony maximize their joint profits cooperatively for one year, what is the| equilibrium? d. Would your answer in part c above be different if Dell and Sony jointly maximize their profits for ten years, or indefinitely? e. From the policy maker standpoint who wants to maximize national welfare (ie consumer surplus and producer surplus), would you prefer Sony and Dell to cooperate or not to cooperate to set prices? Please explain why.

c. Instead, if Dell and Sony maximize their joint profits cooperatively for one year, what is the| equilibrium? d. Would your answer in part c above be different if Dell and Sony jointly maximize their profits for ten years, or indefinitely? e. From the policy maker standpoint who wants to maximize national welfare (ie consumer surplus and producer surplus), would you prefer Sony and Dell to cooperate or not to cooperate to set prices? Please explain why.

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

1
Q-2 Explain the 3 different stages of production.
Hello, I need help with the question 5 and 6
An organization has limited resources, and each department has been asked to reduce costs, what type of costs should the departments reduce first and why?
Give an example to describe a company’s procurement cycle in details with all the steps and departments involved. You should specify the situation, the product being bought, the parties involved and activities done
Rational decisions are made through a process (a) that takes a long time and much effort (b) of cost/benefit analyses (c) that clearly indicates what one choice is best (d) of finding the lowest price for a product.
There are 15 dozen eggs in a case. The case costs $ 22.56. What doe one egg cost?
https://www.youtube.com/watch?v=D2QnK8eDvsk&ab_channel=AcademicEnglishNow please watch the video above and write the key points that you learn from video's content.
Text Entry Copy and paste or type your submission right here. HTML Editor В I A - I E E 3 E E X' X, =三用▼ 12pt Paragraph Quantity Total Costs 20 10 1 30 12 2 42 13 55 20 4 75 25 100 30 16 ||130 128 words MacBook Pro 国 3.
Need this asap thank you
Quantity/Output Total Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Total Cost Average Total Cost Marginal Cost (units) (dollars) (dollars) (dollars) (dollars) (dollars) (dollars) (dollars) 0 $50 $0 10 $50 $20 25 $50 $40 45 $50 $60 60 $50 $80 70 $50 $100
Write the advantages and disadvantages of Cost benefits.