Question

assuming complementary inputs are available, the minimum number of transistors needed to realize a two input xor gate is:

Answer 1

Assuming complementary inputs are available, the minimum number of transistors needed to realize a two input xor gate is 4.

If two inputs work well together in the production process, they are said to be complements. Since the inputs are used in fixed proportions, if the price of one input lowers, more of it will be sought after, increasing the demand for the other input.

In this study, a model of anticompetitive exclusive contracts with complimentary inputs is built. A downstream company converts a variety of complementary inputs into finished goods. When complementary input providers hold a dominant position in a specific input market, upstream competition price within that market benefits both the downstream firm and the complementary inputs providers by driving up complementary input prices.

Thus, even when entry that is socially optimal is permitted, the downstream firm is unable to generate higher profits. Therefore, even in the absence of scale economies, downstream competition, and relationship-specific investment, the inefficient incumbent provider can prevent socially efficient entrance by employing exclusive contracts.

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