A firm making external hard drives has a cost function c(y) = 4y + 1000. Its demand function is y = 200 – 0.5p. a. Calculate the profit-maximizing price and quantity. b. The firm decides to enter the Mexican market. It determines that its demand function in Mexico is y = 40 – p. The cost function remains the same. What price should it charge in Mexico, and what quantity should it sell? c. Would you say the firm is price discriminating? Why or why not, and if yes what type of price discrimination is this? If people began trading these hard drives freely between the US & Mexico, what would happen to the price? (Add the two demand functions together to get a combined demand function for both countries. You will get 2y = ... & then continue from there.) Would total surplus be higher or lower than when the hard drives were not being traded across the border, and why? 2. Market demand for laptop computers is y = 500 - 2p. But the computers are developed by a hardware firm with a cost function c(y) = 10y + 100, & the operating system is developed by a software firm with a cost function of c(y) = 150.
a. Calculate the optimal prices for the hardware & software firm to charge, & the total market quantity.
b. Calculate the optimal price & quantity if it were to behave like a merged firm. 17.
1- What are the elements required to form a contract?
2- What is an electronic agent?
3- Name two occasions, which allow the use of copyright protected work without permission or payment to the owner.
4- Identify and define two ways in which issues of trademark infringement can arise in cyberspace.