Purchase Solution

Nash equilibrium

Not what you're looking for?

Ask Custom Question

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)

Purchase this Solution

Purchase this Solution

Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.