ECON 444 (ECON444)

ECON 444 Homework 5 Problem Set 5 Answers (Penn State University) Problem 1. TomsonBook is the monopoly publisher which produces the textbook “Corporate Economics.” TomsonBook sells in two separate markets, domestic market and international market. The inverse demand function in domestic market is pD =600−qD while the inverse function in international market is pI =450−qI. The firm’s total cost function is c(qD qI)=(qD qI)2. Suppose TomsonBook can charge different prices in each of the...

ECON 444 Homework 4 Problem Set 4 Answers (Penn State University) Problem 1. (True/False). For each statement, assert whether it is true of false and explain your answer. In a one shot sequential move pure Betrand game with two identical firms, there can be more than one subgame perfect Nash equilibrium. In a Cournot-Stackelberg game with identical firms, the equilibrium price is invariant to which firms moves first. In a Bertrand-Stackelberg game, the follower firm has a second mover advantage ...

ECON 444 Homework 3 Problem Set 3 Answers (Penn State University) 1. Problems 1-3 are on the Bertrand Model. Problems 4-6 are additional practice problems relating to earlier units in the course. Problem 1. There are two companies who o↵er tax return services in College Springs: H & R Block and Bill’s Financial Service. Marginal cost for doing a tax return is c = $10 and demand in College Springs for tax returns is Q = 100 P per day (in the first half of April). Assume first that both H & R ...

ECON 444 Homework 7 Problem Set 7 Answers (Penn State University) Problem 1. TomsonBook is the monopoly publisher which produces the textbook “Corporate Economics.” TomsonBook sells in two separate markets, domestic market and international market. The inverse demand function in domestic market is pD =500−qD while the inverse function in international market is pI =400−qI. The firm’s total cost function is c(qD qI)=(qD qI)2. The firm is able to price discriminate between the two market...

ECON 444 Homework 7 Problem Set 7 Answers (Penn State University) Problem 1. TomsonBook is the monopoly publisher which produces the textbook “Corporate Economics.” TomsonBook sells in two separat e markets, domestic market and international market. The inverse demand function in domestic market is pD =500−qD while the inverse function in international market is pI =400−qI. The firm’s total cost function is c(qD qI)=(qD qI)2. The firm is able to price discriminate between the two marke...

Econ 444 (Corporate Economics) Solutions to Problem Set #6 Practice Exam Problem 1. An ice cream company is going to open businesses in Linear City. The city has a population of 2,000 people, all of whom enjoy ice cream and get a utility level of $10 from a scoop of ice cream. The city is 1 mile long and the people are uniformly distributed across the city. City addresses run from 0 to 1 from left to right. There-and-back travel costs within the city are $1 per mile. A scoop of ice cr...

ECON 444 Problem Set #4 - questions + answers Economics of The Corporation 2022-2023 (The Pennsylvania State University) Econ 444 (Corporate Economics), Problem Set #4 Problem 1. (True/False). For each statement, assert whether it is true of false and explain your answer. 1. In a one shot sequential move pure Betrand game with two identical firms, there can be more than one subgame perfect Nash equ...

ECON 444 PROBLEM SET #3 - QUESTIONS + ANSWERS ECONOMICS OF THE CORPORATION 2022-2023 LATEST EXAM UPDATE (THE PENNSYLVANIA STATE UNIVERSITY) Econ 444 (Corporate Economics) Problem Set #3 Practice Exam Problem 1. Bill’s is the only booth selling used records at the Coachella music festival. As the monopoly seller of used records at the festival, Bill earns $700 in profit. This year, Ted is co...