Are you pursuing your major in the field of economics? Are you overburdened because of the economics assignment? Do you need help with economics assignment? It’s not a new story, every economics student has to face this stress of completing assignment before deadlines. But, with the help of Assignment Help Era you don’t have to worry anymore about scoring excellent grades. Our experts analyze the importance as to why a student is studying economics and thus help them with their economics assignment, so that they can score a high distinction. So, if you wish to excel in your academics, then approach our economics assignment help today to avail our most reliable help from economic experts.
Assignment Help Era has a team of experienced and proficient online economics tutor who are ex-professors and also hold Ph.D. and Master’s degree in the field on economics. Therefore, our online economics assignment help are capable of proving one of the best economics assignment. Now, read the following economic assignment sample which will showcase the high-quality work provided by in-house academic writers.
Assignment Details
ECON200 - Economics: Policy Frameworks and Markets
Supplementary Assessment
Semester 2, 2016
This assessment piece is worth 10 marks in total. To pass, you must score a combined total of at least 5 out of 10.
PART 1 (4 Marks)
Imagine you live in a small town. In this town public transportation is limited to an unreliable public bus service and a small fleet of private taxis owned by a company called OL’ CAB. An announcement is made that a rideshare company, YUBER, will start operating in your town as of next month. You learn that whereas the companies do not offer exactly the same service they will definitely compete in the market for paid trips in your town.
PART 2 (6 Marks)
Now, assume that OL’CAB and YUBER decide to advertise to compete for customers in the market.
If they both advertise, they would each earn $ 1 million in profit. If neither advertises, they each earn $ 2 million in profit. But if one advertises and the other doesn't, the firm advertising earns $ 2.5 million in profit while the other earns $ 1 million in profit.
1) Create a payoff matrix to explain the choices that both firms face. (1 mark)
2) Explain which each firm’s dominant strategy is. (1 mark)
3) Find the Nash Equilibrium. (1 mark)
4) Explain what happens if OL’CAB and YUBER decide to collude. (Note: In your answer please comment on who loses from this behaviour and why). (2 marks)