5) INDIES OR MAJOR RECORD LABELS? (2x weight question!)The Big Three music labels in the US are Universal, Warner, and Sony. However, there are many lesser known independentlabels that also can sign musical artists.a) After doing a bit of independent research, briefly compare and contrast the two types of record labels (majors, indies) at anintuitive level. What do they have in common and how do they differ? Be sure to cite your sources (we're not picky aboutcitation style, but we should be able to retrace your steps). Typically included: author, title, publication, date, pages/URL.b) Recalling the concept of a well-defined economic problem, build a model of a musical artist deciding whether to signwith a major label or an indie label. I.e., what is the Actor, Objective, Choice, and Environment? Make it clear what thebenefits and costs are for the two choices. Make up some reasonable numbers and show what decision should be made forthose assumptions.

a)At the visceral level, the structure of the major record companies (like Universal, Warner, and…

Answered: 5) INDIES OR MAJOR RECORD LABELS? (2x…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 16.1IP

See similar textbooks

Similar questions

Table 17-7 Two companies, Wonka and Gekko, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies. Gekko Good Quality 1 Poor Quality Good Quality Wonka = 10 Gekko = 10 Wonka = 12 Gekko = 9 Wonka Poor Quality 1 Wonka = 9 Gekko = 12 Wonka = 11 Refer to Table 17-7. The more frequently this game is played, the more likely it is that a. one firm will experience an increase in profits and the other will experience a decrease in profits. b. both firms will produce a poor quality product. O c. both firms will produce a good quality product. d. both firms experience a reduction in profits compared to the Nash equilibrium outcome. Gekko = 11 Click Save and Submit to save and submit. Click Save All Answers to save all answers. 5 A 6 Aa
Table 17-7 Two companies, Acme and Pinnacle, each decide whether to produce a good quality product or a poor quality product. In the figure, the dollar amounts are payoffs and they represent annual profits (in millions of dollars) for the two companies. Acme Good Quality Poor Quality Acme = 6 Acme = 5 Good Quality Pinnacle = 6 Pinnacle = 8 Pinnacle Acme = 8 Acme = 7 Poor Quality Pinnacle = 5 Pinnacle = 7 Refer to Table 17-7. If this game is played only once, then the most likely outcome is that a. Acme produces a good quality product and Pinnacle produces a poor quality product. b. both firms produce a poor quality product. c. Acme produces a poor quality product and Pinnacle produces a good quality product. d. both firms produce a good quality product. O O O O
Consider two industries, each comprising ten firms. In industry A, the largest firm has a market share of 49 percent. The next three firms have market shares of 7 percent each, and the remaining six firms have equal shares of 5 percent each. In industry B, the top four firms share the bulk of the market with 19 percent apiece. The next largest firm accounts for 14 percent, and the smallest five firms equally split the remaining 10 percent of the industry. a. Compute the four-firm concentration ratio and HI for each industry. Compare these measures across the two industries. Which industry do you think truly exhibits a more competitive structure? Which measure do you think gives a better indication of this? Explain. b. Now let the three second largest firms in industry A merge their operations while holding onto their combined 21 percent market share. Recalculate the HI for industry A. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care…
Match the terms on the left with the definitions in the column on the right (use alphabet to match for example 1-a/2-b/3-c). 1. relevant market a. price changes by one firm in oligopoly affect pricing by other firms 2. market structure b. a few firms that produce goods that are close substitutes 3. mutual interdependence c. one firm producing a good with no close substitutes 4. industry d. the percentage of total market sales produced by a particular firm 5. patent e. a set of goods with high cross elasticities among them 6. monopolistic competition f. large number of firms producing goods that are perfect substitutes 7. oligopoly g. a set of market characteristics common to a group of firms 8. product differentiation h. physical or perceived differences among substitute goods in a market 9. brand loyalty i. many firms that produce differentiated goods that are close substitutes 10. perfect competition k. a monopoly right on…
Oligopoly On the next few slides be sure to answer the following questions. What is an oligopoly? Give an example of an oligopoly. How many sellers are competing? What are the barriers to entry? Do the sellers have control over their price? Why or why not? Are the products different? Should competitors work together in an oligopolistic market? Why or why not? What is it called if they do, and is it legal?
Question Suppose there are only two companies that make a product: Company X and Company Y. Now suppose that both companies have to choose one of two potential strategies for pricing their headphones: setting a low price or setting a high price. The table below shows the expected profits for each company under each pricing scenario. Assume both companies are in competition with each other and seek to maximize their profits. Under these conditions, how much profit should we expect both companies to earn? Company Y High Price Low Price Company X High Price Profit for Company Y: $1,709, 000 Profit for Company X: $1,709,000 Profit for Company Y: $2, 136, 000 Profit for Company X: $256,000 Provide your answer below: Low Price Profit for Company Y: $256, 000 Profit for Company X: $2,136,000 Profit for Company Y: $854,000 Profit for Company X: $854, 000
Which industry(ies) would be indicative of an oligopoly market structure? Check all that apply. A. A drug cartel B. The tobacco industry C. The corn industry D. The restaurant industry E. The grocery industry F. The crude oil industry G. The laundry detergent industry
A 1st attempt Which of the following are examples of collusion? Choose one or more: A. The two firms in a small rural town that employ most of the people in that area agree to keep wages low. B. The two leading cell phone manufacturers apply the same new technology, which increases productivity for both. C. All the gas stations along the Gulf coast increase their prices after a hurricane devastates communities near the water. D. Three major airlines meet to discuss pricing strategy and as a result prices for airplane tickets rise. E. The menu prices at restaurants in New Buffalo, Michigan, a small lakeside town, increase during the summer months and decline starting November 1.
3.4 Bernie and Leona were arrested for money laundering and were interrogated separately by the police. Bernie and Leona were each presented with the following independent offers. If one confesses and the other doesn't, the one who confesses will go free and the other will receive a 20-year prison sentence; if both confess, each will receive a 10-year prison sentence. Bernie and Leona both know that without any confessions, the police only have enough evidence to convict them of the lesser crime of tax evasion, and each would then receive a 2-year prison sentence. a. Use the information to construct a payoff matrix for Bernie and Leona. b. What is the dominant strategy for Bernie and for Leona? Why? c. Based on your response to the previous question, what prison sentence will each receive?
Topic B Problem: Imagine you have two competing athletes who have the option to use an illegal and/or dangerous drug to enhance their performance (i.e., dope). If neither athlete dopes, then neither gains an advantage. If only one dopes, then that athlete gains a massive advantage over their competitor, reduced by the medical and legal risks of doping. However, if both athletes dope, the advantages cancel out, and only the risks remain, putting them both in a worse position than if neither had been doping. What class concept best describes this situation? Using this class concept, what outcome do we expect from these two athletes? Are there any factors that could change the outcome predicted by this course concept?
1. Describe the characteristics of an oligopolistic market and explain whether it is socially efficient or inefficient. 2. What are the pros and cons of cost-benefit analysis in evaluating policy options? 3. What is a Herfindahl-Hirschman Index and the Lerner Index? How are the 2 indices related?
Oligopoly. An oligopoly is less competitive than a market with monopolistic competition. It has only a few sellers who produce either homogeneous or slightly differentiated products. There are steep barriers to entry in an oligopoly. Barriers can be artificial, as in the examples of patents, trademarks, copyrights, or regulation. Barriers can also be natural, as in the case of only a few firms controlling all the available resources that are critical to production. A market can evolve into an oligopoly if a few firms manage to capture economies of scale. An economy of scale is a savings, which results from the size ("scale") of the firm. Large firms can buy raw materials at bulk discount rates, for example. If a small handful of firms become low-cost producers, they will drive highercost producers out of business and create an oligopoly. Potential new entrants may be discouraged by the industry's high start-up cost. The few sellers in an oligopoly are interdependent. An action by one…

SEE MORE QUESTIONS

Recommended textbooks for you

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS