Briefly describe the Stackelberg model. How does this model differ from the Cournot model in terms of each firm's output and profits? How does the price in a Stackelberg model compare to the Cournot price and the monopoly price?
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- Briefly explain and illustrate the impact of pure monopolistic price discrimination behaviour on international trade and the welfare of nations. You can make use of Big Tech as an example. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Judge Mark Griffiths finds that Moodle is a relentless and predatory monopolist. Judge Griffiths says that: Moodle established and maintained the Blackboard monopoly by using the "applications barrier to entry," which gives Moodle enduring monopoly power. Moodle harnesses independent software vendors to create products that take advantage of new application program interfaces (APIs) built into each release of Blackboard. Gives PC makers no choice but to install Blackboard, at whatever price Moodle decrees. Moodle maintains that it has sought only to innovate, serve customers, and protect its intellectual property. Moodle says that it is not a monopoly because: It competes with itself by continually releasing "new and improved" versions of Blackboard. Technological change will ensure that any dominance it enjoys is fragile. Already, "middleware" (applications like RealNetworks) have their own APIs, which new and existing applications might hook on to…The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that supplies Hi-tech components. Use the graph to answer the questions that follow. i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the longrun? Explain your answer. Assume all factors constant.iv. Examine the effects of ABC Inc. Ltd on consumers.
- Does a monopolistic competitor produce too much or too little output compared to the most efficient level? What practical considerations make it difficult for policymakers to solve this problem?Explain in detail the characteristics of pure monopoly market model? AsapLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (0) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE(Dollar per bottle) 4.00 3.50 2:50 2:00 1.50 0 MO 05 MR ATC 2.5 QUANTITY (Thousands of bottles of beer) 35 D Monopoly Outcome Profe Loss
- Does a monopolistic competitor produce too much or too little output compared to the most efficientlevel ? What practical considerations make it difficult for policymakers to solve this problem?Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss PRICE (Dolan per bottle) 400 2.50 2.00 1.50 1.00 050 0 MC 0 ATC AR D 35 QUANTITY(Tands of botes of beer) = Monopoly Outcome Profe LossA small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Competitive Market Demand Competitive Outcome Consumer Surplus Marginal Cost Producer Surplus Quantity of Groceries Price, Cost, Revenue
- 10. Competitive Supermarkets A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus. Competitive Market Demand Competitive Outcome Consumer Surplus Marginal Cost Producer Surplus Quantity of Groceries Price, Cost, Rev enueLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per bottle) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 MC 0 0.5 1.5 ATC MR 1.0 2.5 3.0 QUANTITY (Thousands of bottles of beer) D 2.0 3.5 4.0 Monopoly Outcome Profit Loss image 1 Suppose…Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 3.00 ATC 2.50 2.00 * 1.50 MC MR 1.5 2.0 PRICE (Dollars per bottle) 4.00 3.50 1.00 0.50 0 0 0.5 1.0 2.5 3.0 QUANTITY (Thousands of bottles of beer) 3.00 3.5 (Cans) D Complete the following table to…