by Dan | Oct 17, 2022 | economics
Scenario: You manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by $30 million, and that it would only take $5 million in...
by Dan | Oct 17, 2022 | economics
Scenario: At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying, “…for the past several years, our individual company growth has come out of the other...
by Dan | Oct 17, 2022 | economics
Scenario: Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand oligopoly, and why? i. Neither manager expects her own output decision to impact the other manager’s output decision. ii. Each...
by Dan | Oct 17, 2022 | economics
Scenario: Provide a real-world example of a market that approximates each oligopoly setting, and explain your reasoning for the following: i. Cournot oligopoly ii. Stackelberg oligopoly iii. Bertrand oligopoly
by Dan | Oct 17, 2022 | economics
Scenario: The FCC has hired you as a consultant to design an auction to sell wireless Spectrum rights. The FCC indicates that its goal of using auctions to sell these Spectrum rights is to generate revenue. Since most bidders are large telecommunications...
by Dan | Oct 17, 2022 | economics
Scenario: During the beginning of the 21st century, growth in computer sales declined for the first time in almost two decades. As a result, PC makers dramatically reduced their orders of computer chips from Intel and other vendors. Explain why computer manufacturers...
