Questions tagged [competition]
102 questions
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Why have so many legitimate smaller biotechs sprung up and thrived?
I stumbled this question on r/AskScienceDiscussion, but I'd like to ask it from a microeconomics or competition standpoint.
Why can't Big Pharma accomplish what legitimate small biotechs have? Unquestionably Big Pharma has more money and can corner…
user4020
2
votes
1 answer
Mathemtical Economics Question regarding Profit Maximization
I'm studying Mathematical Economics and there's this question that I'm unable to understand.
Q. Suppose a firm faces a demand curve for its product $P = 32 - 2Q$, and the firm's costs of production and marketing are $C(Q) = 2Q^2$. Find the…
M. Asbaat Amar
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1
vote
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Existence of a competition
Is there any theorem or a set of criteria that can prove whether in a given market there will be any sort of competition?
Student
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1
vote
3 answers
Do price controls increase competition?
Question: Is there any way to show that price controls might increase competition?
I'm trying to find a way, any way, that price controls might lead to an increase in competition between companies. I've done a few hours of research, mostly just…
Frank W
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vote
1 answer
How do we find a competitive equilibrium price when 2 firms operate with different marginal costs?
Consider a homogenous goods market with the demand
function Q = 30 − P, where Q and P denote quantity and price respectively.
There are two firms playing a price game in the following manner: firm 1
quotes a price and then firm 2 chooses a price.…
Arshdeep
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1
vote
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It seems firms spend a lot of time and energy "capturing" market share. Why is that?
Are consumers just silly and once they like a firm they go for it regardless of the price? Or is there something more complex going on?
Fix.B.
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Why do firms produce less than what is socially optimal in an imperfect competition?
I just read an introduction to imperfect competition in my AP microeconomics textbook and one of the practice questions asked about production in imperfect competition. The answer choices were something like this:
A. More is produced than is…
Luke Lee
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About the optimal period 1 price in a 2 period scenario for switching costs (Klemperer, 1995)
In "Competition when consumers have switching costs" (1995), Klemperer puts forward an example with 2 periods, 2 firms, switching costs and transport costs in a Hoteling model. He then shows the equilibrium prices in both period, with the…
Nasan
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Pricing Strategy for Product that Ships Across a Country
Not sure if this is the right place for this question.
Assume I produce a grocery item that I want to sell across the country. If I sell my product to a grocery nearby, my shipping cost will be less than if I were to sell the product to a grocery in…
EconomicsNewbie
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