b. A Single firm, protected by a barrier to entry, produces a personal service that has no close substitutes

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Firms In Competitive Markets
Section: Chapter Questions
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a. Coca-Cola cuts its price below that of Pepsi-Cola to increase profit.

b. A Single firm, protected by a barrier to entry, produces a personal service that has no close substitutes

c. barrier to entry exists, but the good has some close substitutes

d. A museum offers discounts to students and seniors

e. A firm can sell any quantity it chooses at the going price

f. A firm experiences economics of scale even when it produces the quantity that meets the entire market demand.

1. Which of the six cases are monopolies or might give rise to monopoly?

2. which are legal monopolies and which are natural monopolies? can any of them price discriminate? if so, why?

 

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