1) You work for a wholesale craft beer manufacturer that has a TC = 50Q³ 500Q²+ 1500Q + 1000. Demand for Beer (in quantity) is P = 2000 - 300Q. Given there are many wholesalers of craft beer that all feel they have a distinctly different, although similar, product, what is the:

a) Profit Maximizing Quantity

b) What is the market price the manufacturer will set for their beer (in quantity).

c) What is the TR, TC, Profit. What do these results suggest will occur with competitors, given the results you describe in this analytical portion of the question?

2) Given the competitors enter, and the manufacturer under analysis has a decrease in Demand to 1600 300Q, how does this change the results in 1 a-c. What will be the operational decision of this manufacturer given these results? Why?

3) Finally, with respect to this manufacturer, what would be their equilibrium Q, P, TR, TC, and Profit?

4) There are 3 firms operating in a product market with identical goods. Costs of setup have given them reasonable control over the market, such that Firm A has a market share (Their Sales/Total Market Sales) of 32%, Firm B has a share of 28%, and Firm C has a share of 25%. What is the H-H Index of this trio? What does that indicate about the market setup?

5) The of the firms in Q4 face a demand curve for price increases (from current price and quantity) of 1000 2Q, and a demand curve for price decreases of 1200 - 4Q. If TC = 2Q²+ 100Q + 1000, what is the Optimal P, Q, TR, TC, and Profit? Briefly explain why there is a two-piece demand curve. If there is a price increase, what is the Optimal P, Q, TR, TC, and Profit? If there is a price decrease, what is the Optimal P, Q, TR, TC, and Profit? What might be the expected reaction in a second-mover strategy for this firm?

6) There is a game afoot with the competition as to whether to collude on a price change or not. The game results look like:

Briefly explain the choice of Firm A and the choice of Firm B. Why the choices you made and not other available choices?

Firm A Price Inc 100,100 30,150 Price Dec 150,30 150,150 Firm B Price Inc Price Dec Firm A Price Inc 100,100 30,150 Price Dec 150,30 150,150 Firm B Price Inc Price Dec