A monopoly manufacturing plant currently uses many workers to pack its product into boxes. It can replace
Question:
A monopoly manufacturing plant currently uses many workers to pack its product into boxes. It can replace these workers with an expensive set of robotic arms. Although the robotic arms raise the monopoly’s fixed cost substantially, they lower its marginal cost because it no longer has to hire as many workers. Buying the robotic arms raises its total cost: The monopoly can’t sell enough boxes to make the machine pay for itself, given the market demand curve. Suppose the incumbent does not invest. If its rival does not enter, it earns $ 0 and the incumbent earns $ 900. If the rival enters, it earns $ 300 and the incumbent earns $ 400. Now suppose that the incumbent does invest. If the rival does not enter, it earns $ 0 and the incumbent earns $ 500. If the rival enters, the rival loses $ 36 and the incum-bent makes $ 132. Show the game tree. Should the monopoly buy the machine anyway?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
A set of strategies forms a subgame perfect Nash equilibrium if the players strat...View the full answer
Answered By
Diane Joyce Pastorin
Please accept my enthusiastic application to solutioninn. I would love the opportunity to be a hardworking, passionate member of your tutoring program. As soon as I read the description of the program, I knew I was a well-qualified candidate for the position.
I have extensive tutoring experience in a variety of fields. I have tutored in English as well as Calculus. I have helped students learn to analyze literature, write essays, understand historical events, and graph parabolas. Your program requires that tutors be able to assist students in multiple subjects, and my experience would allow me to do just that.
You also state in your job posting that you require tutors that can work with students of all ages. As a summer camp counselor, I have experience working with preschool and kindergarten-age students. I have also tutored middle school students in reading, as well as college and high school students. Through these tutoring and counseling positions, I have learned how to best teach each age group.