Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF1100 Pty Ltd, thanks to an exclusive copyright having been obtained by lobbying the government minister for industry and development - Mr Eco Stuff. Quantity of Price games 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 $200 $190 $180 $170 $160 $150 $140 $130 $120 $110 $100 $90 $80 Total cost $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 a) Using the table above roughly illustrate what the market demand, MC, ATC, and MR functions would look like (you must show the XY intercepts of the MR function b) Considering the 'monopoly' position, estimate what will be the equilibrium quantity and price of 'Fortnightly' games might be using the table provided earlier c) Using the data in the table provided earlier, how much would a firm be willing to spend in lobbying the government to achieve the exclusive position ECF1100 Pty Ltd has in this market?

Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF1100 Pty Ltd, thanks to an exclusive copyright having been obtained by lobbying the government minister for industry and development - Mr Eco Stuff. Quantity of Price games 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 $200 $190 $180 $170 $160 $150 $140 $130 $120 $110 $100 $90 $80 Total cost $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 a) Using the table above roughly illustrate what the market demand, MC, ATC, and MR functions would look like (you must show the XY intercepts of the MR function b) Considering the 'monopoly' position, estimate what will be the equilibrium quantity and price of 'Fortnightly' games might be using the table provided earlier c) Using the data in the table provided earlier, how much would a firm be willing to spend in lobbying the government to achieve the exclusive position ECF1100 Pty Ltd has in this market?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

urgent plzzzz

Consider the following table representing the market for a new PC game 'Fortnightly'.
This game is produced exclusively by a software company called ECF1100 Pty Ltd,
thanks to an exclusive copyright having been obtained by lobbying the government
minister for industry and development - Mr Eco Stuff.
Quantity of Price
games
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
$200
$190
$180
$170
$160
$150
$140
$130
$120
$110
$100
$90
$80
Total cost
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
$550,000
$600,000
a) Using the table above roughly illustrate what the market demand, MC, ATC, and
MR functions would look like (you must show the XY intercepts of the MR function
b) Considering the 'monopoly' position, estimate what will be the equilibrium quantity
and price of 'Fortnightly' games might be using the table provided earlier
c) Using the data in the table provided earlier, how much would a firm be willing to
spend in lobbying the government to achieve the exclusive position ECF1100 Pty Ltd
has in this market?

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