Suppose that The University of Memesland (UM) and Memesland University of Technology (MUT) are the only two universities in Australia that provide online courses to students. Recently they have faced new, international competition, such as the American low- cost university, Horvord. Horvord specialises in providing online courses at a discount to students if they purchase many courses with Horvord. Select the item from the list provided to make the following statements true. When compared to UM and MUT, Horvord could be argued to be engaging in discrimination. price Before Horvord existed, UM and MUT existed in a state of strategic competition, and they both chose dominant strategies that resulted in significant losses for both of them. They were likely facing a If UM decides to offer courses at a discounted price to people under 25 years old, this could be described as price discrimination. 1. first degree 2. second degree 3. peak load pricing 4. pricing power 5. arbitrage 6. inefficient 7. collusion 8. third degree 9. dominated 10. prisoner's dilemma 11, efficient

Suppose that The University of Memesland (UM) and Memesland University of Technology (MUT) are the only two universities in Australia that provide online courses to students. Recently they have faced new, international competition, such as the American low- cost university, Horvord. Horvord specialises in providing online courses at a discount to students if they purchase many courses with Horvord. Select the item from the list provided to make the following statements true. When compared to UM and MUT, Horvord could be argued to be engaging in discrimination. price Before Horvord existed, UM and MUT existed in a state of strategic competition, and they both chose dominant strategies that resulted in significant losses for both of them. They were likely facing a If UM decides to offer courses at a discounted price to people under 25 years old, this could be described as price discrimination. 1. first degree 2. second degree 3. peak load pricing 4. pricing power 5. arbitrage 6. inefficient 7. collusion 8. third degree 9. dominated 10. prisoner's dilemma 11, efficient

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Igrushka is a profit-maximizing firm producing wooden dolls-a capital-intensive good-which are sold in its home country, Russia, and abroad in France. Igrushka chose foreign production as a method of penetrating the French market and has to decide whether it is more efficient to directly invest in France to establish a production subsidiary or to license the technology to a French firm to produce its goods. On the following graph, AVCFrance is the average variable cost curve of a French firm producing wooden dolls. (This curve represents costs such as labor and materials.) The curve ATCSubsidiary represents the total unit costs Igrushka will face if it establishes a subsidiary in France. PER-UNIT COST (Dollars) 10 9 8 1 0 0 ATC 15 Subsidiary 30 45 60 75 90 105 120 PRODUCT (Thousands) AVC France 135 150 ? 4
Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more
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am. 114.
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