Dear tutor, please show a detailed explanation of how you arrived at the answers to the questionS BELOW:

QUESTION 1

There are two competitors in a geographic market for TV services, Cox Cable (Firm X) and Netflix (Firm Y).Cox Cable has just increased its monthly subscription price from $50/month to $55/month.As a result, the quantity demanded of Netflix services has increased from 200,000 customers to 204,000 customers. What is the cross-elasticity of demand?

a._yx=0.05

b._yx=0.10

c._yx=0.20

d._yx=1.75

e._yx=5.00

QUESTION 2

There are six competing firms in the large-scale enterprise software industry, where the market shares of the firms are as follows:

28%, 22%, 16%, 14%, 12%, 8%.

What is the value of the4-firm concentration ratio?

a.C₄=8

b.C₄=42

c.C₄=60

d.C₄=80

e.C₄=92

QUESTION 3

There are six competing firms in the large-scale enterprise software industry, where the market shares of the firms are as follows:

28%, 22%, 16%, 14%, 12%, 8%.

There is strong product differentiation in the market.

What is the value of the Herfindahl index and the market structure.? a. H=0.0800, with perfect competition

b.H=0.1928, with monopolistic competition

c.H=0.1928, with perfect competition

d.H=0.3168, with monopolistic competition

e.H=0.3168, with oligopoly

QUESTION 4

There 2 firms in a Cournot Oligopoly market for cell phone service in a Texas county.The market inverse demand function and the total cost functions each of the two firms are as follows:

P=50-0.25(Q₁+Q₂) (market inverse demand)

TC₁=5 + 10Q₁(total cost function for firm 1)

TC₂=2 + 12Q₂ (total cost function for firm 2)

Which of the following represents the equilibrium market price, and level of output for firm 1 and firm 2?

a.P=$35 Q₁=42 Q₂=42

b.P=$24 Q₁=56 Q₂=48

c.P=$24 Q₁=48 Q₂=56

d.P=$24 Q₁=52 Q₂=52

e.P=$28 Q₁=36 Q₂=32

In equilibrium, what will the firm 2 profit equal?

a.₂=$240

b.₂=$350

c.₂=$574

d.₂=$779

e.₂=$1,152