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Week 6
“Market Structures” Please respond to the following:
* From the scenario, suggest substantive ways in which Herb and Renee may use the information in the table in order to ascertain the profit maximizing level of output and price. Provide a rationale for your decision.
Week 7
“Price Setting Strategies” Please respond to the following:
* From the scenario, determine to the importance of predicting the pricing strategies of rival firms in an industry characterized by mutual interdependence. Provide a rationale for your response.
Examine the common price setting strategies of airlines that use game theory. Predict the potential effects of such pricing strategies on the demand for seats, and conclude the resulting impact on the profitability of the airlines.
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