34. Type of product: There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who passed inspections can acquire and maintain their license. * 5 (1 Point) Standardized (Identical) Differentiated

34. Type of product: There are dozens of pasta producers that sell pasta to hundreds of Italian restaurants nationwide. The restaurant owners buy from the cheapest pasta producer they can. While pasta manufacturers must pay licensing fees to their local government and undergo regular food-safety inspections, anyone who passed inspections can acquire and maintain their license. * 5 (1 Point) Standardized (Identical) Differentiated

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter14: Limiting Market Power: Antitrust And Regulation

Section: Chapter Questions

Problem 8DQ

See similar textbooks

Similar questions

J 7 Though many MNCs espouse and follow rigid codes of social responsibility in their home countries they are often not as diligent with respect to ‘host’ or overseas countries. In 1984 the Bhopal disaster in Madhya Pradesh, India killed 3,787 and impacted a further 558,125 people. The corporation in question was Union Carbide, a majority USA owned company. Indian courts convicted the Chairman and other senior executives of “…causing death by negligence”. i) Why do you believe that Union Carbide had a less stringent policy in India with respect to negligence than they did in the USA? ii) What is the way to fix this situation? Explain whether it is legislation or cultural change from MNCs that is required
27. The sales department manager for a laminate flooring company has been considering changing the commission program, a change that would affect the income of all employees in the sales department. Information about the new commission structure is released when a document detailing the change is accidentally left on the printer, and a number of complaints soon followed. The department manager is reconsidering the change based on these complaints. Which barrier to change is this company experiencing? A.Misalignment between the change and the mission of the organization B.Fear that the culture of the organization may change C.Lack of infrastructure or training to support the change D.Negative employee attitude towards the change
onomics 3. Why is it significant for salespeople to know that value is a subjective concept? (Minimum 45 words) Answer: 4. Explain how partnering is enhanced with high ethical standards. (Minimum 45 words) Answer: 5. Discuss the role of transactional selling in our economy. (Minimum 95 words) Answer: 6. Discuss some of the major marketplace trends, whichhave compelled firms to make large investments in personal selling. (Minimum 65 words) b
Over the past decade, the total amount of beer consumed in Japan has declined as the beer market has continued to shrink due to higher liquor taxes, changing the sales trend of alcoholic beverage products.In the same period, however, the market share of so-called craft beers has quadrupled, to about 2 percent of all beers.Four larger domestic breweries account for 98% of beer production, with smaller local breweries producing the rest (domestic market share: 39% asahi, 31% kirin, 16% suntory, 12% Sapporo and 2%).Imported beer accounts for only about 1% of the total beer market.Craft beer is expected to boost inbound visitors to the 2019 rugby World Cup and 2020 Tokyo OlympicsThe Japanese government is concerned about combined market power that may be exercised by The big four beer brewing companies in Japan. Drawing on economic principles, explain one policy the government could consider implementing to increase competition in the Japanese beer market. Briefly discuss why and how the…
Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $70,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $240 per hour. The typical rate of return on financial investments in the economy was 8%.
Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $80,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $250 per hour. The typical rate of return on financial investments in the economy was 8%. Question 1 In the scenario above, what was Kate's explicit cost ($)? Numeric Answer: Question 2 In the scenario above, what was Kate’s cost of capital ($)? Numeric Answer: Question 3 In the scenario above, what was Kate’s economic profit ($)? Numeric Answer: Question 4 In the scenario…
The main distinction between applied and basic business research is that: a. basic research does not have to be carried out in a scientific manner b. basic research undertaken to make a contribution to existing knowledge, whereas applied research is undertaken specifically to solve a current problem c. applied research is aimed at solving a currently problem, whereas knowledge gained by the findings of basic research cannot be applied by organizations to solve their own problems d. none of the above
Erin quit her job, where she earned $90,000 per year, to start her own economic consulting firm. She invested $60,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $50,000 for rent on the office building, $300,000 for wages and salaries of employees, and $10,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $48,000. During the year, the firm billed its clients for 2,400 hours at $200 per hour. The typical rate of return on financial investments in the economy was 5%. Erin's accounting costs were $_____ Her cost of capital was $____ Her total costs were $ ___ Her economic profit was ____ And her normal profit was $ ____
1. Why does price minus extraction cost rise at the rate of interest in a competitive market for an exhaustible resource? In a competitive market for an exhaustible resource, the user cost of producing an exhaustible resource rises at the rate of interest because.. a. Exhaustible resources should be extracted if price minus marginal cost rises faster than the rate of interest. b. Exhaustible resources should be unextracted if price minus marginal cost rises faster than the rate of interest. c. Price minus marginal cost is less than marginal revenue minus marginal cost d. When price minus marginal cost rises at the rate of interest, marginal revenue minus marginal cost rises faster than the rate of interest.
multiple choice. answer only Question 1. This market structure has a lot of competitors selling non-identical goods.A. Perfect competition C. OligopolyB. Monopolistic competition D. Monopoly2. What does a discount rate in the net present value signify?A. Amount of interest earned C. Firm's time and risk preferenceB. Amount needed by the firm D. Rate of firm's growth3. Why does the value of money diminish over time?A. Inflation C. Decrease in consumer informationB. Increase in competition D. Interest rates4. Which disequilibrium profit theory is applicable to businesses with high capitalrequirements?A. Frictional profit theory C. Compensatory profit theoryB. Innovation profit theory D. Monopoly profit theory5. Which of these is NOT part of the three (3) basic economic questions?A. What commodities should be produced?B. How should those commodities be produced?C. Why should the commodities be produced?D. For whom are those commodities produced?6. Which of these…
1) Turbines, aerospace products, optical equipment, and measuring instruments, are examples of products that are normally produced and consumed in ____________________ economies. Group of answer choices low income high-income low-to-medium income emerging-market 2) One market segment that is pursued by global marketers around the world is that of the middle-class family. This would be an example of what kind of bases for global market segmentation? Group of answer choices distribution promotion environmental marketing management 3) When efforts are made to localize some of the tactical marketing program elements (e.g. distribution or product sizes) of a global marketing program, this is referred to as ____________________. Group of answer choices mixed marketing concentrated marketing decisions localized pricing glocalization
H6. Your mother owns and runs an arts and craft store, and the business is doing well. She would have otherwise been employed as a high school geography teacher making $80,000 a year or as an interior decorator making $68,000 a year. She owns the building in which her shop is located, which she could have rented out for $24,000 a year. Her annual revenue from the shop is $430,000 and she employs four workers, each of whom earns $30,000 a year. On average, she spends $206,000 per year traveling, purchasing, and shipping unique merchandise for resale at her store. Based on this information, do you think you should encourage her to return to teaching? Explain your advice with the help of calculations on her opportunity costs, accounting profit, and economic profit.