Question: Entry Deterrence and Exclusive Dealing c) (10 marks). Illustrate the profit and welfare consequences of exclusive dealing. by solving the Exclusive Dealing and Economies of

Entry Deterrence and Exclusive Dealing c) (10 marks). Illustrate the profit

Entry Deterrence and Exclusive Dealing

c) (10 marks). Illustrate the profit and welfare consequences of exclusive dealing. by solving the "Exclusive Dealing and Economies of Scale" model done in class for the parameter values indicated below. Exclusive Dealing and Economies of Scale N buyers, Buyer demand: q = a - p, AC falls for Q S Q*, AC = c, Q > Q* Parameter Values: N = 125, a = 12, c = 4, Q* = 200

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