Bonus Question: Option (a) Directions: Question 26(a) is a f…
Bonus Question: Option (a) Directions: Question 26(a) is a free response question whose answer you must type in the space provided. Question: Consider an industry with three firms who compete in price. Each firm sets its own price, pi. The firm with the lowest price gets all demand from customers. Assume firms split the market if they set the same price, and there are no fixed costs. Suppose that the three firms have different marginal costs such that the marginal cost of firm i is MCi = ci. The marginal cost of firms are MC1 = c1, MC2 = c2, MC = c3, where c2 < c1 < c3. What are the equilibrium prices (p1*, p2*, p3*) in this industry? In your response, explain the type of competition engaged in by firms using terminology discussed in lecture, how each firm chooses its equilibrium price pi*, compare (rank in order from lowest to highest) the prices of all three firms, p1, p2, and p3, and which firm(s), if any, receive positive demand from customers.
Read DetailsIn your own words, explain the following term — in Spanish….
In your own words, explain the following term — in Spanish. Your explanation should make clear the meaning of the word. Do not simply use the term in a sentence. The idea is to explain the definition in Spanish. The idea is to explain the definition in Spanish so a person would understand the term based on your explanation. la deuda
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