Regulation and Antitrust Policy (Econ 180)
|
Course page:
www.drake.edu/cbpa/econ/boal/180
|
I. Multiple choice [2 pts each: 16 pts total]
(1)b. (2)b. (3)c. (4)b. (5)b. (6)d. (7)a. (8)b.
II. Problems
(2) [Game theory: 12 pts]
(2) [Oligopolist's marginal revenue: 16 pts]
(3) [Collusion, joint profit maximization: 32 pts]
(4) [Cournot duopoly: 20 pts]
III. Challenge question
Set MCA = MCB
12 + (qA/100) = 1 + (qB/50)
12 + (qA/100) = 1 + (1000-qA)/50
and solve to get qA* = 300
and qB* = 700.
I. Multiple choice [2 pts each: 16 pts total]
(1)d. (2)d. (3)b. (4)d. (5)d. (6)b. (7)c. (8)c.
II. Problems
(2) [Game theory: 12 pts]
(2) [Oligopolist's marginal revenue: 16 pts]
(3) [Collusion, joint profit maximization: 32 pts]
(4) [Cournot duopoly: 20 pts]
III. Challenge question
Set MCA = MCB
3 + (qA/100) = 1 + (qB/50)
3 + (qA/100) = 1 + (1000-qA)/50
and solve to get qA* = 600
and qB* = 400.
[end of answer key]