Re: ISI ME II 2014

Posted by Ridhika on Apr 29, 2014; 8:25pm
URL: http://discussion-forum.276.s1.nabble.com/ISI-ME-II-2014-tp7587168p7588068.html

Hi guys please see my answers below.. and let me know if any of them aren't matching with the ones you guys have got..

1a) Best strategy to sell 2.5 in domestic mkt and 97.5 abroad
1b) Best strategy to sell 4  in domestic mkt and 0 abroad

2ai) a=b=20
2aii) a=b=5
2bi)  100
2bii)30

3ai & ii) Max profit = 525 in both cases.. it is better to not proce discriminate for this monopolist

3b) - what is meant by "valuations" - is this before or after trade?

4ai) q=7.5, p=12.5
4aii) q=6, p=14

5a) q1=q2=3
5b) I think it should be (2,2) but im not sure..

6aii) yes
6aiii) if it changes then less housing and more of other goods will be consumed
6bi)x=25, p=75

7a) k^a
7b)1/(1-a) x (1/d)^1/(1-a) x s^(a/1-a)
7c) s=a

Would be great if somone could explain 3(b) and 10..