Governments can implement the excess profit tax as an intervention measure to correct for market failure in a monopoly market. Under this measure Kerajaan boleh melaksanakan cukai untung berlebihan sebagai langkah intervensi untuk membetulkan kegagalan pasaran dalam pasaran monopoli. Di bawah langkah ini a. profit maximizing decisions of the firm are unaffected keuntungan memaksimumkan keputusan firma tidak terjejas b. profit maximizing decisions of the firm are affected and output is increased keputusan keuntungan pemaksimuman firma terjejas dan output ditingkatkan c. profit maximizing decisions of the firm are affected and price is lowered keputusan keuntungan pemaksimuman firma terjejas dan harga diturunkan d. the firm's average total cost will shift upwards although it will not have any effect on its marginal cost

Governments can implement the excess profit tax as an intervention measure to correct for market failure in a monopoly market. Under this measure Kerajaan boleh melaksanakan cukai untung berlebihan sebagai langkah intervensi untuk membetulkan kegagalan pasaran dalam pasaran monopoli. Di bawah langkah ini a. profit maximizing decisions of the firm are unaffected keuntungan memaksimumkan keputusan firma tidak terjejas b. profit maximizing decisions of the firm are affected and output is increased keputusan keuntungan pemaksimuman firma terjejas dan output ditingkatkan c. profit maximizing decisions of the firm are affected and price is lowered keputusan keuntungan pemaksimuman firma terjejas dan harga diturunkan d. the firm's average total cost will shift upwards although it will not have any effect on its marginal cost

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 16PAE

See similar textbooks

Similar questions

Classify the following as a government-enforced barrier to entry, a banker to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years
If the transit system were regulated to operate with no subsidy (i.e., at zero economic profit), what approximate output would it supply and what approximate price would it charge?
a. Give two examples of price discrimination. In each case, explain why the monopolist chooses to follow this business strategy. b. Both antitrust policy and industrial regulation deal with monopoly. What distinguishes the two approaches? How does government decide to use one form of remedy rather than the other? c. How does social regulation differ from industrial regulation? What types of benefits and costs are associated with social regulation?
The Competition Commission of Mauritius has been dealing with a number of cases of allegedexploitative monopoly behavior by firms in Mauritius. On the basis of relevant cases, analyse the viewthat although monopolies can be good, yet governments need to regulate them as they can often beevilish and they can affect the interest of consumers.