5. Microeconomics and macroeconomicsDetermine whether each of the following topics is more likely to be studied by microeconomists or macroeconomists.ТopicMicro or Macro?The effect of government tax policy on long-term economicgrowthMicroThe effect of government regulation on a monopolist'sMacroproduction decisionsThe effect of tobacco duty on the quantity of cigarettes sold5. Microeconomics and macroeconomicsDetermine whether each of the following topics is more likely to be studied by microeconomists or macroeconomists.ТopleMicro or Macro?The effect of government tax policy on long-term economicgrowthThe effect of government regulation on a monopolist'sproduction decisionsMicroThe effect of tobacco duty on the quantity of cigarettes soldMacroDetermine whether each of the following topics is more likely to be studied by microeconomists or macroeconomists.TopicMicro or Macro?The effect of government tax policy on long-term economicgrowthThe effect of government regulation on a monopolist'sproduction decisionsThe effect of tobacco duty on the quantity of cigarettes soldMacroMicro

The effect of the government tax policy on term economic growth - Macroeconomics The effect of…

Answered: 5. Microeconomics and macroeconomics…

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 7PA

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Do you think it is possible for government to outlaw everything that businesses could do wrong? If so, why does government not do that? If not, how can regulation stay ahead of rogue businesses that push the limits of the system until it breaks?
3. The Placebo Drug Company holds a patent on one of its discoveries. (a) Assuming that the production of the drug involves rising marginal cost, draw a diagram to illustrate Placebo’s profit-maximizing price and quantity. Also, show Placebo’s profits.(b) Now suppose that the government imposes a tax on each bottle of the drug produced. On a new diagram, illustrate Placebo’s new price and quantity. How does each compare to your answer in part (a)?(c) Although it is not easy to see in your diagrams, the tax reduces Placebo’s profit. Explain why this must be true.(d) Instead of the tax per bottle, suppose that the government imposes a tax on Placebo of ¿110 000 regardless of how many bottles are produced. How does this tax affect Placebo’s price, quantity, and profits? Explain.
13. What is the economic argument that monopolies are most often less efficient than highly (say, perfectly) competitive producers? for managerial economics class
use diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?
1. A U.S. patent for the drug that most effectively treats HIV prevents other drug companies from producing a comparable substitute for patients. a. What is the effect of patent protection on the demand for a drug? How does the shape of the demand curve differ before and after a patent has expired? Support your explanation with a graph. b.Demand curves respond to preferences, income, and costs of substitute and complements. Discuss how these factors determine a country’s demand for HIV treatments. How might the effects of the patent protection differ across countries?
1. Supposed the firm has fixed cost production but no variable cost.The profit of firm is maximized when a. It produce at the level where it's a total revenue is maximized b. It produce at the level where it's Marginal revenue is equal to price c. It produce at the level where it can charge the highest price possible d. It produce at the level where it's average cost is equal to its marginal cost 2. The most common source of illegal Monopoly today is a. Predatory pricing b. Intellectual property rights c. Royal edict d. Natural monopoly 3. In a monopolist ( profit maximizing) marginal revenue P> MC ( the price exceeds the marginal cost). The implies that a. The consumer surplus is equal to the producer surplus b. The total value of the good is maximized c. The equilibrium is Marshall inefficient d. The market price is equal to the market quantity
7. Define the principles of diminishing marginal utility and increasing marginal costs. How are they relevant to the equilibrium point？ 8. How do you market systems achieve perfect efficiency? 9. In what three wats do perfectly competitive free markets establish perfect morality?
63. The invisible hand refers to the: A. fact that the U.S. tax system redistributes income from rich to poor. B. notion that, under competition, decisions motivated by self-interest promote the social interest. C. tendency of monopolistic sellers to raise prices above competitive levels. D. fact that government controls the functioning of the market system. 64. The invisible hand concept suggests that: A. market failures imply the need for a national economic plan. B. big businesses are inherently more efficient than small businesses. C. the competitiveness of a capitalistic market economy invariably diminishes over time. D. assuming competition, private and public interests will coincide. 65. Two major virtues of the market system are that it: A. allocates resources efficiently and allows economic freedom. B. results in an equitable personal distribution of income and always maintains full employment. C. results in price level stability and a fair personal distribution of…
A. What is meant by the change in the quantity demanded and the change in demand support your answer graphically.B. Distinguish between Oligopoly and Monopoly, and which one leading to price discrimination?C. Elaborate how prices are determined in a free-market economy for tourism inputs?E. Explain the circular flow of income in four sector economy.
I need full explanation for these questions so that I can understand. 1. Which of the following is not an example of non-price competition? a. Advertising b. Quality improvements c. Customer service d. Location e. Price discounts 2. In the short-run, a monopolistically competitive firm can receive a. Only a normal profit. b. Only a positive economic profit. c. Only a negative economic profit. d. A positive or negative economic profit, or a normal profit. 3. In both perfect competition and monopolistic competition, firms a. Produce differentiated products. b. Produce standardized products. c. Receive only a normal profit in the long run. d. Engage in non-price competition. e. Always receive only a normal profit in the short run. 4. Considering all four market structures, which of the following occurs only in an oligopoly? a. A downward sloping market demand curve. b. A downward sloping demand curve for the individual firm. c. Interdependence and strategic behavior. d. A differentiated…
15. The marginal benefit to suppliers will be less than the marginal cost to the single buyer. This describes A-perfect competition B-monopolistic competition C-an oligopoly D-a monopoly E-a monopsony 13 Which of the following is correct about a monopsonistic market? A-Resources are efficiently allocated. B-There is one seller and many buyers. C-The monopsony has a lower quantity transacted as in a perfectly competitive market, ceteris paribus. D-The supply curve is horizontal and is equal to the average cost of labor. E-Purchase of an additional unit decreases the price of that unit and of the existing units being purchased.
17.Which of the following statements about monopolistically competition is CORRECT: A. Earn abnormal profits in the long run. B. Always make profit in the short run because of monopoly power. C. Charge a price equals to minimum average total cost in the long run. D. In the long run, produce at price greater than marginal cost 18.(a) Explain whether each of the following statements applies to microeconomics or macroeconomics: (i) The jobless rate in the housing industry has increased substantially in 2020. (ii) A national car rental company has shut down due to Covid-19. (iii) The inflation rate in Malaysia has decreased by 2% last year. (b) Discuss how a market system and a command economy try to cope with economic scarcity.

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