ECON654 Industrial Economics - 统计代写答疑辅导

分类： ECON654 Industrial Economics

经济代写|ECON654 Industrial Economics

Posted on 2023年3月24日2023年3月24日 by statistics-lab

Statistics-lab™可以为您提供unh.edu ECON654 Industrial Economics产业经济学课程的代写代考和辅导服务！

ECON654 Industrial Economics课程简介

This course will provide students with a survey of economic models in industrial organization, applied to innovation-related issues. The course is divided into three sections. In the first one, we introduce the concept of innovation, its measurement and how it is related to knowledge. In the second part, we look at innovation at the firm level. In particular, we delve into the “knowledge- creating” company and its strategies. Finally, we analyze the structure and evolution of several hi-tech industries, in terms of survival of existing firms and creation of new firms. Prereq: ECON 401 and ECON 402. Writing intensive.

PREREQUISITES

This course will provide students with an overview of economic models in industrial organization, specifically related to innovation. The course is divided into three sections.

In the first section, students will be introduced to the concept of innovation, including its measurement and how it is related to knowledge. This section will likely cover topics such as the different types of innovation (e.g., product innovation, process innovation, organizational innovation), how innovation is measured (e.g., patents, R&D spending), and the relationship between knowledge creation and innovation.

The second section of the course will focus on innovation at the firm level. Students will learn about the strategies that companies use to create and manage knowledge, with a particular emphasis on the so-called “knowledge-creating” company. This section may also cover topics such as the role of intellectual property rights in innovation, the relationship between innovation and market power, and the impact of innovation on firm performance.

In the final section of the course, students will analyze the structure and evolution of several hi-tech industries. This section will likely include case studies of industries such as biotechnology, software, and telecommunications, and will examine factors such as the survival of existing firms and the creation of new firms in these industries.

Prerequisites for this course include ECON 401 (Microeconomic Theory) and ECON 402 (Market Structure and Pricing). Additionally, this course is writing-intensive, meaning that students will be expected to write multiple papers throughout the semester.

ECON654 Industrial Economics HELP（EXAM HELP， ONLINE TUTOR）

问题 1.

Which index do you think better captures the change in the competitive environment in this case?

There’s no real wrong answer here. Both values have their strengths and weaknesses. In general, the $H H$ is a better measurement tool since it allows markets of different sizes to be compared. However, in this case, both markets (the before and after) are the same size, so I would actually prefer the $C R_4$ measurement.

I understand that you are referring to a specific case, but without additional context or information, it is difficult for me to provide a more specific answer.

In general, both the $H H$ and the $C R$ indices are commonly used to measure changes in the competitive environment of a market. The $H H$ index measures the market share of the top firms in a market, while the $C R$ index measures the market share of the top four or eight firms in a market.

The $H H$ index is generally more sensitive to changes in market structure, especially when there are a few dominant firms in a market. However, it may not capture changes in the market share of smaller firms. On the other hand, the $C R$ index is less sensitive to changes in the market share of the dominant firms, but may better capture changes in the market share of smaller firms.

Ultimately, the choice of index depends on the specific characteristics of the market being analyzed and the research question being asked.

问题 2.

If the firm decided to implement a two-part pricing strategy, what would the monopolist charge for the entry fixed cost and the price per unit?

In a two-part pricing strategy, a monopolist charges a fixed fee for the right to purchase a product or service, in addition to a per-unit price for the quantity of the product or service actually purchased.

To determine the optimal pricing strategy, the monopolist would need to consider the following factors:

The demand for the product or service
The variable costs of producing each unit of the product or service
The fixed costs of entry into the market
The level of competition in the market

Assuming the monopolist has this information, it would set its two-part pricing strategy as follows:

The entry fixed cost: The monopolist would charge a fixed fee that covers the fixed costs of entry into the market, such as the cost of building a factory or investing in research and development. The specific amount of the entry fee would depend on the demand for the product or service, the level of competition, and the variable costs of production.
The price per unit: After charging the entry fee, the monopolist would charge a per-unit price for each unit of the product or service sold. The per-unit price would be set based on the variable costs of production, the demand for the product or service, and the level of competition in the market. The monopolist would aim to set the per-unit price high enough to cover the variable costs of production and generate a profit, but low enough to maximize the total revenue from sales.

Overall, the specific entry fixed cost and price per unit charged by a monopolist using a two-part pricing strategy would depend on the specific market conditions, demand for the product or service, and level of competition.

Textbooks

• An Introduction to Stochastic Modeling, Fourth Edition by Pinsky and Karlin (freely
available through the university library here)
• Essentials of Stochastic Processes, Third Edition by Durrett (freely available through
the university library here)
To reiterate, the textbooks are freely available through the university library. Note that
you must be connected to the university Wi-Fi or VPN to access the ebooks from the library
links. Furthermore, the library links take some time to populate, so do not be alarmed if
the webpage looks bare for a few seconds.

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经济代写|ECON654 Industrial Economics

Posted on 2023年3月10日2023年3月10日 by statistics-lab

Statistics-lab™可以为您提供unh.edu ECON654 Industrial Economics产业经济学课程的代写代考和辅导服务！

ECON654 Industrial Economics课程简介

PREREQUISITES

This course will provide students with an overview of economic models in industrial organization, specifically related to innovation. The course is divided into three sections.

ECON654 Industrial Economics HELP（EXAM HELP， ONLINE TUTOR）

问题 1.

$F_1, F_2$, and $F$ are all fixed costs, $c$ is the constant marginal cost, and $q_1$ and $q_2$ are output levels. Interpret the final term of $c\left(q_1, q_2\right), \mu q_1 q_2$. What happens as $\mu$ increases?
$\mu q_1 q_2$ is an interaction term that makes the overall production of both goods by the (larger) firm cheaper. There are many possible explanations for what is going on, but here is one example. Suppose both $q_1$ and $q_2$ were assembled on a three stage assembly line. Now suppose that these products were similar such that the second stage of assemble were identical between the products (they both need the same computer chip, or something like that). The firm could save significant capital investment by using the same capital to assemble both products, lowering their cost of producing both of them. As for $\mu$, it is a parameter that determines how effective this process is. For low values of $\mu$, the process has small cost savings, but as $\mu$ gets larger, the savings become significant.

To add to the explanation provided, $\mu$ represents the degree of complementarity between $q_1$ and $q_2$. When $\mu$ is small, the two goods are relatively independent, and producing more of one does not significantly affect the cost of producing the other. However, as $\mu$ increases, the two goods become more complementary, and producing more of one reduces the cost of producing the other. This is because the firm can take advantage of economies of scope by producing both goods together, rather than separately, which results in cost savings.

Therefore, as $\mu$ increases, the magnitude of the interaction term $\mu q_1 q_2$ increases, leading to a greater reduction in the overall cost of production. This can result in higher profits for the firm if the market demand for the two goods is high enough to justify the investment in producing both of them.

问题 2.

Consider a five-firm industry in which all five firms are initially the same size with a market share of 20 percent each. Suppose that as the result of an aggressive and successful advertising campaign, firm 1 raises its market share to 25 percent, while the share of each of the other remaining firms declines to 18.75 percent.

What happens to the $\mathrm{CR}_4$ and the $H H$ index as a result of this change?
Initially, we can calculate the $C R_4$ index by adding up the four largest firms’ market shares,
$$
C R_4=20+20+20+20=80
$$
and we can obtain the $H H$ index by squaring all of the market shares and adding them,
$$
H H=20^2+20^2+20^2+20^2+20^2=2000
$$
Afterwards, we simply repeat the process,
$$
\begin{aligned}
C R_4^{\prime} & =25+18.75+18.75+18.75=8125 \
H H^{\prime} & =25^2+18.75^2+18.75^2+18.75^2+18.75^2=2031.25
\end{aligned}
$$
As we can see, both the $\mathrm{CR}_4$ and $\mathrm{HH}$ index increase as the market becomes more concentrated due to the larger firm.

Does this change represent a movement toward or away from monopoly? This change represents a movement towards monopoly. The fact that one firm is able to increase its market share while the other firms see their market shares decline indicates that this firm has gained a competitive advantage over the others. As the market becomes more concentrated, there are fewer firms competing with each other, making it easier for the remaining firms to exert market power and charge higher prices. Therefore, this change is a movement towards a monopoly.