An imperfect competitor Group of answer choices ‍will set price where the MC = AR ‍will set price where MR = MC ‍will determine output where MR = MC and is free to set whatever price it wants ‍will determine output where MR = MC and will set price according to the demand curve

When a customer is required to buy one product only if the customer also buys a second product, this is called Select the correct answer below: bundling predatory pricing restrictive practice tying sales

Suppose the inverse market demand is given by P 500-5Q. If the incumbent continues to produce 25 units of output, which of the following equations best summarizes the potential entrant's residual demand curve? Multiple Choice P=375-50. P-375-2.50. P-350-2.50 P-350-50.

Mr. Nelson, the manager of a US company, entered into a contract with an Italian company, Roma, to order some leather suitcases. The Goods were delivered on time, but with some of the zippers on the suitcase defective. Mr. Nelson contracted Roma and gave a notice that he wanted to cancel the contract. Roma responded that they only can give a reduction in the price. Who is legally right?

None

The average consumer at a firm with market power has an inverse demand function of P = 10 − Q. The firm's total cost function is C = 2Q. If the firm engages in two-part pricing, what is the optimal price to charge a consumer for each unit purchased?   Multiple Choice   $2   $0   $1   $4

Suppose the inverse demand curve in a market is D(p) =a-bp, where D(p) is the quantity demanded  and p is the market price. Firm 1 is the leader and has a cost function  c1(y1)=cy1 while firm 2 is the follower with a cost function c2(y2 )= y^22/2 (picture attached).  Firm 1 sets its price to maximise its profit. Firm 1 correctly forecasts that the follower takes the price leader’s chosen price as given (price taker) and chooses output so as to maximise its own profit. Write down the profit function of the follower. Calculate the profit maximising quantity that the follower selects given the leader’s chosen price p (i.e., calculate the follower’s supply curve S(p)). Interpret the solution to the profit maximising problem. The leader is facing the residual demand curve R(p)=D(p)-S(p) with D(p) and S(p) as defined in (c) above. Calculate the leader’s residual demand curve using the result in (c). Solve for p as a function of the leader’s output y1, i.e. the inverse demand function facing…