Posted: August 14th, 2022

Assignment: Oligopoly and Monopolistically Competitive Firms

Unit 6 Task: Oligopoly and Monopolistically Competitive Firms

Your Identify:

On this task, you’ll be assessed on the next Final result:

MT445-Three: Analyze the manufacturing determination in revenue maximization for the 4 main market buildings.
On this task, you’ll compute whole value, whole income, and whole revenue/loss. Based mostly on the computed outcomes, you’ll decide the optimum amount of output, which minimizes loss underneath a monopolistically aggressive market. As well as, additionally, you will consider the advertising and marketing methods of oligopoly market companies.

Directions: This task requires a mix of brief paragraph solutions and computations. Reply the entire following questions on this doc. You might be required to observe correct APA format. Learn the Standards part beneath for extra info earlier than you start this task.

1. Do the companies in an oligopoly act independently or interdependently? Clarify your reply.

2. A wonderfully aggressive agency has the next fastened and variable prices within the short-run. The market worth for the agency’s product is $140.

Output FC VC TC TR Revenue/Loss
zero $80 $zero ___ ___ ___
1 80 90 ___ ___ ___
2 80 170 ___ ___ ___
Three 80 290 ___ ___ ___
four 80 430 ___ ___ ___
5 80 590 ___ ___ ___
6 80 770 ___ ___ ___

a. Full the desk.

b. What degree of output ought to the agency produce to maximise income?

c. Assume this agency is making a loss when it produces its seventh unit of output. What ought to the agency do within the short-run? Ought to it function at loss or shutdown within the short-run?

Three. A monopolistically aggressive agency has the next demand and value construction within the short-run.
Output Worth FC VC TC TR Revenue/Loss
zero $90 $30 $zero ____ ____ ________
1 80 ____ 40 ____ ____ ________
2 70 ____ 80 ____ ____ ________
Three 60 ____ 140 ____ ____ ________
four 50 ____ 220 ____ ____ ________
5 40 ____ 320 ____ ____ ________
6 30 ____ 440 ____ ____ ________
7 20 ____ 580 ____ ____ ________
a. Full the desk.

b. What degree of output maximizes revenue or minimizes loss?

c. Ought to this agency function or shut down within the short-run? Why?

four. Suppose that Wal-World and Tarbo are independently deciding whether or not to implement a brand new bar code know-how or use the present bar code. It is more cost effective for his or her suppliers to make use of one system and the next payoff matrix exhibits the income per 12 months for every firm ensuing from the interplay of their methods.

(Description of the graph: The payoff matrix exhibits two oligopoly firms: Wal-World and Tarbo, that are competing to extend their market share and payoffs. They’ve two methods, that are taking part in present bar code and new bar code. The 2 firms get totally different payoffs once they play totally different methods.)

a. Does Wal-World have a dominant technique? Briefly clarify.

b. Does Tarbo have a dominant technique? Briefly clarify.

c. Is there a Nash Equilibrium on this recreation? Briefly clarify.

References

Standards

• This task ought to be accomplished within the Phrase template supplied underneath Course Paperwork.
• It ought to be written in Customary English and exhibit distinctive content material, group, model, and grammar and mechanics.
• Reply to the questions in a radical method, offering particular examples the place requested.
• Add references in APA format as a separate web page on the finish of your paper.
• Your sources and content material ought to observe correct APA format (A title web page is just not required). Overview the APA codecs discovered within the Writing Assets accessed by the Tutorial Success Middle inside the Tutorial Instruments space of the course.
• Overview the grading rubric to make sure all factors have been captured within the paper.

Instructions for Submitting your Task
Full your task within the Phrase template supplied. Submit your task by the tip of Unit 6 to the Unit 6 Task Dropbox. Make sure that to save lots of a duplicate of your work and remember to verify that your file uploaded accurately.

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