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Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF 1100
Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF 1100 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 Total cost 0 $200 $0 1000 $190 $50,000 2000 $180 $100,000 3000 $170 $150,000 4000 $160 $200,000 5000 $150 $250,000 6000 $140 $300,000 7000 $130 $350,000 8000 $120 $400,000 9000 $110 $450,000 10000 $100 $500,000 1 1000 $90 $550,000 12000 $80 $600,000b) 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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