Monopoly, duopoly and barriers to entry Assignment

Monopoly, duopoly and barriers to entry - Assignment Example Thus, Q = 3 is the profit maximizing output. This is not a Pareto efficient equilibrium. Pareto efficiency requires the price to equal marginal cost. Therefore, the Pareto efficient equilibrium would have the price equalling $12 and then from the demand curve we find that the Pareto efficient equilibrium quantity would be the solution to 12 = 24 – 2Q which implies that the Pareto efficient quantity would be Q = 6. 1) Playing â€Å"Don’t cooperate† is the dominant strategy for both firms. Note when the other firm plays â€Å"Collude†, playing â€Å"Collude† yields a payoff of $9 whereas â€Å"Don’t cooperate† yields a payoff of $10. Again, when the other firm plays â€Å"Don’t cooperate†, playing â€Å"Collude† yields a payoff of $7 whereas â€Å"Don’t cooperate† yields a payoff of $8. Therefore, playing â€Å"Don’t cooperate† yields a higher payoff irrespective of the rival firm’s strategy. Hence, â€Å"Don’t cooperate† is a dominant strategy for both firms. 2) The Nash equilibrium strategy profile is {Don’t cooperate, Don’t cooperate}.This is best seen by noticing that since â€Å"Don’t cooperate† is a dominant strategy, neither player has a unilateral incentive to deviate from this profile. Hence, it is the unique Nash equilibrium in this game. 3) The Nash equilibrium strategy profile leads to aggregate profits of $16 ($8+$8). The highest aggregate profits are earned in this game from the {Collude, Collude} profile, where both players earn $9 so that the aggregate profits are $18. Therefore, the Nash equilibrium strategy profile does not maximize aggregate profits. 4) The monopolist prices the good at $18 and sells 3 units in equilibrium. Its per unit cost is 12. Thus the monopolist’s total revenue is TR = 3 x 18 = $54 and its total cost is TC = 12 x 3 = 36. Therefore the monopolist’s profit is $54 - $36 = $18. If the firms successfully collude, their total aggregate profits are equal to the monopolist’s profits. But since they

Drama Essay Example | Topics and Well Written Essays - 750 words - 1

Drama - Essay Example Amanda decides marriage is the only answer for Laura and forces Tom to find a beau for his sister. Unfortunately, the one he finds, while perfectly acceptable to both Laura and Amanda, is already engaged. This leaves Laura with a broken heart, symbolized by the broken unicorn Laura encourages him to keep as a souvenir. The play is a tragedy because Amanda, having had the opportunity to learn from her past, continues to live in a dream-world of her own creation, effectively crushing her children’s chances to create their own dreams. Amanda reveals her dreams in her expectations for her children. She continues to hold out hopes for a good marriage for her daughter in spite of her extreme shyness and poverty. This starts with her own recitation of the quality of her suitors, â€Å"My callers were gentlemen – all! Among my callers were some of the most prominent young planters of the Mississippi Delta – planters and sons of planters† (I, 148). Her expectations for her son are that he become like one of these old suitors in spite of his own youth and lack of education or social advancement. These expectations reveal that â€Å"Amanda lives in the past and imposes unrealistic rules of conduct upon her children† (Popkin, 1960, p. 46). Immediately upon Tom telling her that he has a friend coming over for dinner, Amanda already considers him her daughter’s future husband. Tom tries to reign her in by stating â€Å"Lots of fellows meet girls whom they don’t marry† (V, 184 ), but Amanda just tells him to â€Å"talk sensibly.† This emphasizes Amanda’s tendency to crush the realities of their situation and the ideas of her children beneath her own dreams and memories. Richard Vowles (1958) describes the play’s dreamlike qualities as another element intended to point out this oppression: â€Å"One scene dissolves into another. There is, indeed, almost a submarine quality about the play, the kind of poetic slow motion that