ECS4862 Assignment 2 (COMPLETE ANSWERS) 2024 - DUE 21 June 2024 ;100 % TRUSTED workings, explanations and solutions. For assistance call or W.h.a.t.s.a.p.p us on ...(.+.2.5.4.7.7.9.5.4.0.1.3.2)...........
ASSIGNMENT 02
DUE DATE: 21 June 2024
QUANTITATIVE QUESTIONS
As in the prescribed book...
ECS4862 Assignment 3 (COMPLETE ANSWERS) 2024 - DUE 16 August 2024 ;100 % TRUSTED workings, explanations and solutions.
ECS4862 Assignment 3 (COMPLETE ANSWERS) 2024 - DUE 16 August 2024 ;100 % TRUSTED workings, explanations and solutions.
ECS4862 Assignment 3 (COMPLETE ANSWERS) 2024 - DUE 16 August 2024 ;100 % TRUSTED workings, explanations and solutions.
All for this textbook (12)
Written for
University of South Africa
Advanced Microeconomics (ECS4862)
All documents for this subject (2)
1
review
By: wendym32 • 3 months ago
Seller
Follow
LIBRARYpro
Reviews received
Content preview
ECS4862
ASSIGNMENT 2 2024
UNIQUE NO.
DUE DATE: 21 JUNE 2024
, ASSIGNMENT 02
DUE DATE: 21 June 2024
QUANTITATIVE QUESTIONS
As in the prescribed book, we use the comma (,) to separate thousands, and the full
stop (.) as a decimal point.
ANSWER THE QUESTIONS AS DIRECTLY AS POSSIBLE AND EXPLAIN YOUR
ANSWERS. ALL WORKINGS MUST BE SHOWN OTHERWISE, FULL MARKS WILL
NOT BE AWARDED.
QUESTION 1
Suppose a large steel manufacturing industry consists of D identical firms and the
. Each firm’s total cost is 0.5𝑐𝑐2 + 1.
market demand curve is 𝑃𝑃 = 𝑘𝑘 − 𝑚𝑚𝑚𝑚
(a) Find the Cournot equilibrium quantity per firm. (5 marks)
(b) Find the Cournot equilibrium market quantity and price. (3 marks)
c) Find the Monopoly market quantity, markup, and elasticity of demand. (3 marks)
d) Find the Duopoly market quantity, markup, and elasticity of demand. (3 marks)
e) Find in the perfectly competitive markets, the markup and elasticity of demand.
(3 marks)
f) Assume that D-1 Firms merged into Firm 1, as a leader produces quantity M.
Whereas the unmerged firm becomes Firm 2, a follower producing quantity Z. The
inverse market demand curve is given by 𝑃𝑃 = 280 – 2(M + Z) . Firms 1 and 2 have
marginal costs equal to 40, respectively.
(i) Assuming duopoly, find the reaction function, equilibrium output and price. Plot the
reaction function and show the equilibrium quantities. (7 marks)
(ii) Find the Stackelberg equilibrium quantities and price. (4 marks)
(iii) Using well annotated diagram show the Stackelberg equilibrium in (i). (3 marks)
QUESTION 2
a) In the reward program of leading fast fast-moving consumer goods market there
are only two firms. Firms A and B should decide whether to offer a frequent buyer
program to their customers. The annual profits of Firms A and B associated with
each strategy are summarized in the following table below.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LIBRARYpro. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.71. You're not tied to anything after your purchase.
