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- discuss in detail political approaches to privatizationAfter having been informed that some massage parlors are being used as fronts for prostitution, the Sangguniang Panlungsod passed an ordinance subjecting the massage parlors to such high amount of taxes that leave them no alternative but to stop operating. Is the ordinance valid?Is there any veracity on the benefits of privatization for the government and the people? If so, cite examples ofsuccessful privatizations in the Philippines as well in other countries in which there is significant success in privatization.
- The government’s primary goal in awarding patents is to: A. Make sure that patent holders earn substantial profit. B. Create more monopoly firms. C. Create a perfectly competitive market. D. Encourage more innovation.Consider a monopolist who chooses to provide special discount to a group of customers with low willingness to pay—say, students, or seniors, or people living in a lower-income country. That kind of behavior cannot be explained by standard microeconomic theory, since a profit-maximizing monopolist would never want to provide any discounts.(a) True. (b) False.If a monopoly hires lobbyists who successfully argue for legal changes favorable to the monopoly, this is an example of
- What is meant by the term “market power”? Can a monopolist charge any price it wants because it is the only seller? What is the profit maximizing /loss minimizing rule a firm should follow regardless of the market structure within which the firm is operating? If the monopolist is incurring a short run economic loss, what are some options the monopolist has?Once a monopolist has determined its profit-maximizing (equilibrium) quantity of output, QM, which condition does it use to set the price? Question 9Answer a. None of the other options are correct b. Price = Demand at QM c. Price = Average Cost at QM d. Price = Marginal Cost at QMCan a monopolist earn losses? If yes, then when and under what circumstances?
- Is Price Discrimination a case of monopoly only? If yes, then why and how? Why is it favorable to monopolists? And what are the reasons for this act? Can we consider dumping and prices discrimination the same? If yes then how, if not then why? Make a meaningful report to cover all the aspects of monopoly, price discrimination and dumping.A monopolist earns $40 million annually and will maintain that level of profit indefinitely, provided that no other firm enters the market. However, if another firm enters the market, the monopolist will earn $40 million in the current period and $22 million annually thereafter. The opportunity cost of funds is 15 percent, and profits in each period are realized at the beginning of each period. a. What is the present value of the monopolist’s current and future earnings if entry occurs?b. If the monopolist can earn $27 million indefinitely by limit pricing, should it do so?A monopolist earns $30 million annually and will maintain that level of profit indefinitely, provided that no other firm enters the market. However, if another firm enters the market, the monopolist will earn $30 million in the current period and $15 million annually thereafter. The opportunity cost of funds is 10 percent, and profits in each period are realized at the beginning of each period. a. What is the present value of the monopolist’s current and future earnings if entry occurs? b. If the monopolist can earn $16 million indefinitely by limit pricing, should it do so? Explain.
