There are two types of car, distinguished by how fuel efficient they are. Type 0 is the less fuel efficient type, and type 1 is the more fuel efficient. The inverse
demand curves for the two types of car are: P0 = 250 − Q0 − Q1/2, P1 = 120 − Q1 − Q0/2. (1)
Cost functions are C0(Q0) = 50Q0, C1(Q1) = 20Q1 (2) respectively.
1. Until question 5, we consider a “feebate” or “Clean Car Discount”. That
generally means there would be a subsidy on the purchase of some cars, and
a tax on others, but in the following analysis it will be possible to have taxes
on both or subsidies on both. In the current question, assume that there are
two monopolies, one for type 0 cars and one for type 1 cars. Mathematically,
this is equivalent to a Cournot duopoly with differentiated goods.
(a) Let type 0 cars be taxed at τ0 = 20 per car sold, and type 1 cars be
subsidised at 20 per car. To keep the notation consistent between the
two types, this subsidy will be represented as a negative tax: τ1 = −20.
The profits of the monopolist for type 0 cars are (250 − 50 − 20 − Q0 −
Q1/2)Q0.
Write down an expression for profits of the monopolist selling type 1
cars.
(b) Take first-order conditions for the two monopolists.
(c) Simultaneously solve your first-order conditions to find the equilibrium
quantities sold of the two types of car.
(d) What would τ0 and τ1 have to be set to, for the equilibrium quantitites to
be Q0 = 60, Q1 = 60? Note that while this is a bit different conceptually
from what you have done before, it is simpler mathematically. Instead
of having to simultantaneously solve the two conditions, you should be
able to solve them one-by-one. Remember to replace −20 with −τ0 in
the expression for profits from type 0, and +20 with −τ1 in the profits
for type 1.
Despite the fact that Yahoo (or appropriately composed as Yahoo!) probably won’t be as well known as it was in its developmental days, its locales are as yet the eighth generally famous on the web. This web pioneer is as yet known for its email, news page, and different administrations. With Yahoo being made in the mid 1990s, it drove the web into new headings and offered clients creative administrations. In the accompanying passages, an investigation will be done inside and out about this pioneer organization as far as its history and improvement.
Jerry Yang and David Filo, both electrical building graduate understudies at Stanford University, made a site called “Jerry and David’s manual for the World Wide Web” in January of 1994. The site highlighted an index of different sites that were accessible (Clark, Andrew). They included onto this registry with intensity, regardless of chipping away at their alumni extends too. The area yahoo.com was formally made on January eighteenth of that year (“Computer History for 1995”).
Be that as it may, by March 1994, the site was renamed “Yippee!”. The Yahoo Directory was just altered by the makers at the time and was not altered self-governingly through calculations. This was the first reason for Yahoo however: for people to take into account people going through the beginning of the web (Thomson, David G.). The term Yahoo is utilized not coincidentally. It is a backronym (an abbreviation produced using an expression whose underlying letters explain a word or words, to make a critical name or as an enjoyment clarification of a word’s root) for “One more Hierarchically Organized Oracle” or “One more Hierarchical Officious Oracle” (“The History of Yahoo! – How It All Started… “). As per Lifewire, “Jerry and David said they loved the meaning of a yahoo: “impolite, unsophisticated, raunchy. “At last, the word Yahoo! did generally depict it as a web search catalog”‘ (Gil, Paul). By and large, you can tell the designers of Yahoo were making some acceptable memories with shaping this imaginative site.
In spite of it being a pet undertaking of two alumni understudies, Yahoo took off. As per Yahoo! Media Relations, “Jerry and David before long discovered they were not the only one in needing a solitary spot to discover helpful Web locales. After a short time, many individuals were getting to their guide from well past the Stanford trailer. Word spread from companions to what immediately turned into a critical, steadfast crowd all through the intently weave Internet people group” (“The History of Yahoo! – How It All Started… “). Truth be told, in the fall of 1994, they had just collected one million hits and around 100 thousand one of a kind guests.
Subsequent to seeing these numbers, Jerry and David moved toward investors and joined the business. As Yahoo! Media Relations states, “They in the end ran over Sequoia Capital, the well-respected firm whose best speculations included Apple Computer, Atari, Oracle and Cisco Systems. They consented to subsidize Yahoo! in April 1995 with an underlying speculation of almost $2 million” (“The History of Yahoo! – How It All Started… “). What’s more, subsequent to getting subsidized, they searched out a supervisory crew. They contracted two veterans of the market: Tim Koogle and Jeffrey Mallet.
Subsequent to getting the second round of financing in the fall of 1995, Yahoo propelled an IPO (first sale of stock) in April of 1996. At the time, they had 49 workers. Quick forward to the mid 2000s, and Yahoo was the main Internet brand internationally. Notwithstanding, after the late 2000s, it steadily declined in impact. Google made progress with a less expensive workforce and better models for web indexes and registries (“The History of Yahoo! – How It All Started… “).
Yippee was the primary organization of its sort: a mainstream catalog driving clients to the best locales on the web. It developed to be an overall wonder in mail, news, searches, pictures, and that’s only the tip of the iceberg. In any case, in the wake of wrestling over the market with Google for near 10 years, Google eventually conquered its capacity, and now Yahoo stays a good eighth spot in most-utilized sites.
Works Cited
Clark, Andrew. “How Jerry’s Guide to the World Wide Web Became Yahoo.” The Guardian, Guardian News and Media, 1 Feb. 2008, www.theguardian.com/business/2008/feb/01/microsoft.technology.
Thomson, David G. Outline to a Billion: 7 Essentials to Achieve Exponential Growth. John Wiley and Sons, Inc., 2010.
“PC History for 1995.” Computer Hope, 27 Feb. 2019, www.computerhope.com/history/1995.htm.
“The History of Yahoo! – How It All Started… ” Yahoo! Media Relations, web.archive.org/web/20130402073246/http://docs.yahoo.com/information/misc/history.html.