Question
Consider a hypothetical firm operating in a hypothetical market that you imagine. Name your firm as A, the others as B, C, D, ... Measure
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Consider a hypothetical firm operating in a hypothetical market that you imagine. Name your firm as A, the others as B, C, D, ...
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Measure the market structure by assigning hypothetical market shares to your firm and rival firms. Explain the concentration level in the market.
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Measure the industry-wide market power by assigning hypothetical price and cost information (please keep the market share information on question #2).
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Write down the cost function of your firm. Derive, average, and marginal costs (please check that marginal cost is the same in question #3).
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Does your firm exploit economies of scale or economies of scope or both? Show how by relying on your cost function in question #4?
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(For this question, assume that your firm is a monopoly) Do you make price discrimination? Which type? Is it profitable rather than applying a uniform price? Please show by defining hypothetical demand functions (keep your cost function on question #4).
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(For this question, assume that your firm is a monopoly) What type of product differentiation do you apply? Vertical or horizontal? Please explain on a hypothetical demand curve (keep your cost function on question #4, develop it in case of vertical differentiation)
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