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Hello. I need assistance with only 4.) C. (mainly the graph) I have attached the entire question for reference. Thank you so much! Monopoly and
Hello. I need assistance with only 4.) C. (mainly the graph) I have attached the entire question for reference. Thank you so much!
Monopoly and Duopoly 4. (Exam 2016) In 1998, with the introduction of the Mach3 shaving line, Gilette was the only seller of multi-blade razors and multi-blade replacement cartridges. The U.S. annual inverse demand for multi-blade replacement cartridges was given by P = 1300 2Q, where P is measured in cents per cartridge and Q in millions of cartridges. Giiette incurs a constant marginal cost of $1 [use 100 cents] for each cartridge supplied. a. Given the demand and cost information above, how many replacement cartridges did Gilette supply? What was the price of Gileiie replacement cartridges? Illustrate your answer on a diagram in which you place Q on the X-axis and P on the y-axis. Make sure to indicate all relevant intercepts. b. Is the level of output that you found in a. Pareto efficient? Explain in less than ve lines. You do not need to have answered questions a. and b. to answer questions 1:. through f. In 2004, Schick entered the market for multi-blade razors with its Quattro shaving line and since then it has competed with Gileiie a-la Cournot. Assume that, in 2004, the inverse demand for multi-blade replacement cartridges was still given by P = 1300 20, and that U6300 Problem Set 5 Gilette and Schick had the same cost structure (that is, both of them had a marginal cost of $1, or 100 cents). c. What was Gilette 's reaction function? Illustrate Giiette 's reaction function on a graph in which you place Giiette 's quantity on the X-axis, and Schick's quantity on the y-axis. :1. Explain in words the meaning of the two intercepts of Gilette's reaction function. [In answering this question you are not allowed to use any math, any number, the words \"anything, \" or \"nothing\Step by Step Solution
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