Explore BrainMass

Explore BrainMass

    Nash equilibrium

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    1. (a) A monopolist uses price discrimination to increase their profits. Where does this profit come from? Use a graph to explain your answer.

    (b) How is monopolistically competitive firm different from a perfectly competitive firm in the long-run? Graph this.

    (c) What characteristic of monopolistic competition drives this result?

    2. What does it mean to be a Nash equilibrium?

    3. What characteristic of market structure allows for long-run profits? Explain.

    4. All else equal, what effect would the recent increasing gas price have on our economy? Graph this.

    5. Omitted

    (Questions are also included in attachment. Do not answer Question #5)

    © BrainMass Inc. brainmass.com December 24, 2021, 4:57 pm ad1c9bdddf