Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
Captain Morgan’s spiced rum and Connor McGregor’s Irish whiskey, “Notorious”, can be considered differentiated products because some consumers prefer one over the other and do not all decide to buy the cheaper liquor. Let the demand for bottles of Captain Morgan’s be qM = 4 − pM + δpN and the demand for bottles of Notorious be qN = 4 − pN + δpM where pM and pN are the prices of the two liquors, respectively. For simplicity, assume the liquors are costless to produce.
(a) What determines whether the products are substitutes or complements? Why?
(b) Suppose δ = 0.75 and that the owners of each liquor compete in Bertrand competition. Draw the best response functions.
(c) Suppose the owners of Captain Morgan’s purchase Notorious. Write out the new “best response functions” corresponding to the pricing problem faced by the owners of Captain Morgan’s. On the same diagram drawn in (b), plot them. Show on your diagram how prices changed after the merger.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more