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First 3 questions are to related for 4... D Question 1 5 pts In a given market the inverse demand function is P = 170

First 3 questions are to related for 4...

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D Question 1 5 pts In a given market the inverse demand function is P = 170 - Q per year. The interest rate is r = 0 05 and the cost structure of a firm is given by C(q) = 80 q. Assume the market is monopolized and answer the following The per year monopoly profit for the firm 7 is: O 1875 2025 2550 1600Question 2 5 pts In a given market the inverse demand function is P = 170-Q per year. The interest rate is r = 0.05 and the cost structure of a firm is given by C(q) = 80 q. Assume the market is monopolized and answer the following: A research institute develops a new technology that reduces marginal cost to 50 and upon entering the market it competes on quantity with the incumbent (who cannot access the new technology). As a result, per year profits for the firms are: 400 for the incumbent and 2500 for the entrant. O 600 for the incumbent and 3000 for the entrant. O 200 for the incumbent and 3000 for the entrant 800 for the incumbent and 1200 for the entrantD Question 3 5 pts In a given market the inverse demand function is P = 170- Q per year. The interest rate is r = 0.05 and the cost structure of a firm is given by C(q) = 80 q. Alternatively, the research institute can sell the new technology to the monopolist and then stay out of the market. If it is safe to assume that no more advances will be made in the future, then the maximum price that the monopolist is willing to pay for the innovation and the minimum price that the research institute is willing to receive for it are respectively: 0 42,000 and 33:600 so the monopolist ends up buying the new technology. Q 42,000 and 52,500 so the monopolist ends up not buying the new technology. O 75,600 and 33,600 so the monopolist ends up buying the new technology 67,200 and 52,500 so the monopolist ends up buying the new technology.D Question 4 5 pts In a given market the inverse demand function is P = 170 - Q per year. The interest rate is r = 0.05 and the cost structure of a firm is given by C(q) = 80 q. Another alternative is to license the technology to the other firm (for this, assume that the innovator has obtained a patent for it) but stay in the market, Determine which of the following is true: O It would charge a fee of t = 30 per unit sold and obtain 3. 100 in per year profits O It would charge a fee of t = 45 per unit sold and obtain 6,175 in per year profits It would charge a fee of t = 30 per unit sold and obtain 6,175 in per year profits O It would charge a fee of t.= 15 per unit sold and obtain 3,200 in per year profits

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