SoundzTech has developed a new type of ear bud for use with the latest iPhone and iPad. This new ear bud delivers studio quality sound that rivals over-the-ear headphones. The most amazing feature of the new ear buds is that they are voice activated so that the user can choose the artist, album, and song without having to touch the iPhone or iPad. Unfortunately for SoundzTech, there is no patent protection to prevent others from entering this new market. SoundzTech knows that they will be the first firm to enter the market and will thus be able to behave as a monopolist. In order to prevent others from quickly entering this new market, SoundzTech should probably: A. treat the new market as a Stackelberg oligopoly and make an output decision based on the most likely competitor’s probable marginal cost B. engage in limit pricing C. treat the new market as a Cournot oligopoly and assume that the most likely competitor will have the same marginal cost as SoundzTech D. treat the new market as a standard Bertrand oligopoly and set prices equal to their own marginal cost Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
SoundzTech has developed a new type of ear bud for use with the latest iPhone and iPad. This new ear bud delivers studio quality sound that rivals over-the-ear headphones. The most amazing feature of the new ear buds is that they are voice activated so that the user can choose the artist, album, and song without having to touch the iPhone or iPad. Unfortunately for SoundzTech, there is no patent protection to prevent others from entering this new market. SoundzTech knows that they will be the first firm to enter the market and will thus be able to behave as a monopolist. In order to prevent others from quickly entering this new market, SoundzTech should probably:
A.
treat the new market as a Stackelberg oligopoly and make an output decision based on the most likely competitor’s probable marginal cost
B.
engage in limit pricing
C.
treat the new market as a Cournot oligopoly and assume that the most likely competitor will have the same marginal cost as SoundzTech
D.
treat the new market as a standard Bertrand oligopoly and set prices equal to their own marginal cost
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
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