Q. In the Hotelling model of locations (brands), the higher the number of locations (brands), the_...

 

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Q. In the Hotelling model of locations (brands), the higher the number of locations (brands), the_ is the product price, and the monopolist who produces all these locations (brands) is likely to earn profit. a) Lower; zero b) Higher; zero c) Higher; positive d) Lower; positive Q. In the Hotelling model of locations (brands), if t = $3, the total number of consumers is 2,000 and fixed cost of setting up each location (brand) is $300, the firm will have locations (brands) and the socially optimal number of locations (brands) is a) 5; 4 b) 2; 1 c) 3; 2 d) 4; 3 Q. In the Hotelling model of locations (brands), the socially optimal number of locations (brands) is than the optimal number for the private firm. A reason for this difference is that a) Higher; price falls when F rises, which decreases producer surplus b) Lower; price rises when t rises, which decreases consumer surplus c) Lower; price rises when n rises, which decreases consumer surplus d) Higher; price falls when V falls, which decreases both consumer surplus and producer surplus Q. In the Hotelling model of locations (brands), if the firm decides to produce n = 5, these five stores (brands) should be located at on the one-mile street. a) 1/5; 2/5; 3/5; 4/5; 1 b) 1/10; 3/10; 5/10; 7/10; 9/10 c) 0; 1/6; 3/6; 5/6; 1 d) 0; 1/4; 2/4; 3/4; 1 Q. In the Hotelling model of locations (brands), the higher the number of locations (brands), the_ is the product price, and the monopolist who produces all these locations (brands) is likely to earn profit. a) Lower; zero b) Higher; zero c) Higher; positive d) Lower; positive Q. In the Hotelling model of locations (brands), if t = $3, the total number of consumers is 2,000 and fixed cost of setting up each location (brand) is $300, the firm will have locations (brands) and the socially optimal number of locations (brands) is a) 5; 4 b) 2; 1 c) 3; 2 d) 4; 3 Q. In the Hotelling model of locations (brands), the socially optimal number of locations (brands) is than the optimal number for the private firm. A reason for this difference is that a) Higher; price falls when F rises, which decreases producer surplus b) Lower; price rises when t rises, which decreases consumer surplus c) Lower; price rises when n rises, which decreases consumer surplus d) Higher; price falls when V falls, which decreases both consumer surplus and producer surplus Q. In the Hotelling model of locations (brands), if the firm decides to produce n = 5, these five stores (brands) should be located at on the one-mile street. a) 1/5; 2/5; 3/5; 4/5; 1 b) 1/10; 3/10; 5/10; 7/10; 9/10 c) 0; 1/6; 3/6; 5/6; 1 d) 0; 1/4; 2/4; 3/4; 1

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The detailed answer for the above question is provided below Answer Question 1 c Higher positive The Hotelling model of locations brands states that when there is an increase in the number of location... View the full answer