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Eco 2023 Paige Homework #11     1

Economics

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Eco 2023 Paige

Homework #11

 

 

1.         Give three examples of artificial barriers to entry.  Why do artificial barriers create problems for consumers?                                                                                          (20 pts)

 

 

2. Describe the problems faced when using a concentration ratio.                     (20 pts)

 

 

 

3. Find a site on-line that discusses an oligopoly model or models. Provide the link and give a brief description.                                                                                         (20 pts)

 

4. The following firms are all the firms in the industry, listed in order of sales.

 

Firm A             18,000                                                 Firm E             2,500

 

Firm B             14,000                                                 Firm F             2,000

 

Firm C               7,000                                                 Firm G             1,600

 

Firm D               3,700                                                 Firm H             1,200

 

 

Find the HHI.  Is this a highly concentrated industry or not?                                   (15 pts)

 

 

 

5. What are the three ways firms could openly cooperate?                    (15 pts)

 

 

6. For the below game theory matrix, identify which cell is the Nash equilibrium and which cell is the joint profit maximization cell.                                                 (10 pts)

 

	Firm A sets competitive P	Firm A sets monopoly P
Firm B sets competitive P	Firm A makes $100,000 Firm B makes $100,000	Firm A makes $  20,000 Firm B makes $150,000
Firm B sets monopoly P	Firm A makes $150,000 Firm B makes $  20,000	Firm A makes $120,000 Firm B makes $120,000