Is Price gouging criminal or is it the free market working efficiently? - Think about the pros and cons of a market approach or a legal approach as one suggestion.
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- 13 sellers and 13 buyers are each willing to buy or sell one unit of a good, with values {$13, $12, $11, $10, $9, $8, $7, $6, $5, $4, $3, $2, $1}. If there is a single monopoly market-maker who keeps as profit the difference between bid and ask prices, the equilibrium quantity traded in the market is: A. 7. B. 4. C. 1. D. 10. Why?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?As a result of globalization and new information and communications technology, would you expect that the definitions of markets that antitrust authorities use will become broader or narrower?
- 2. The demand for fishing on the salmon river for two individuals A and B are as follows: QA(P) = 40-2P QB(P) = 30-P where Q is the number of fish, and P represents the marginal value of fish caught (in dollars). Suppose again that the demands describe fish caught and kept for eating (fish catch/keep is divisible/rivalrous as in question 1), but only 40 fish total are allowed to be caught and kept (assume the Fish and Game Department does not charge for fishing - they just limit the number allowed to be caught). (a) If each fisher is allowed to catch and keep 20 fish, what would be the marginal value of the 20th fish for each fisher? (b) If each fisher is allowed to catch and keep 20 fish, what is the total surplus for each fisher, and total surplus for both (ignoring any costs of fishing)? (c) Suppose the fishers were allowed to transfer their fishing rights. What would be the optimal allocation of fish between the two individuals, who would sell to whom and at what price?…d. Give two examples of a spillover cost situation and explain why your examples are correct. e. Explain in detail, the economic effects of spillover costs. Provide details starting with the firm avoiding costs (how and why that happens) and conclude by explaining the nature of the market failure and what it really means. f. Explain in detail, how spillover costs are corrected and how those two approaches would actually work to solve the problem. Be very detailed.Samantha went to a farmers' market to buy strawberries. She is willing to pay up to $5 for the first pound, $3.50 for the secondpound, and $2 for the third. She ended up buying strawberries from a seller who offered them for $3 per pound. Suppose thelowest price the seller would accept is $2.10 per pound. How much value did this transaction generate? ($)
- 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 quantityHello! Just stuck on answering these questions. Explaining the answer would be greatly appreciated. Thank you. A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?a) Using economic reasoning, why are masks important? Explain. (b) Using economic reasoning, why does the market fail to yield the efficient outcome in the specific scenario given? Explain. (c)Discuss the pros and cons of imposing a price ceiling in the United States.
- A6 3) Pricinga) Provide a real-world example of third-degree price discrimination (with a hyperlink to the example). Discuss what prevents re-sale in your example (i.e. why can’t people who pay a lower price sell the good to people who face a higher price?). b) Provide a real-world example of a seller offering a “decoy option” (with a hyperlink to the example). Discuss how you expect the demand for the other options to change if this decoy option was removed from the market by the seller.Assume that you are in the business of building houses in United Kingdom. You have analyzedthe market carefully, and you know that at a price of £120,000, you will sell 800 houses peryear. In addition, you know that at any price above £120,000, no one will buy your housesbecause the government provides equal-quality houses to anyone who wants one at £120,000.You also know that for every £20,000 you lower your price, you will be able to sell an additional200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,you can sell 1,200 houses; and so on.a. Sketch the demand curve that your firm faces.b. Sketch the effective marginal revenue curve that your firm faces.c. If the marginal cost of building a house is £100,000, how many will you build and whatprice will you charge? What if MC = £85,000?1. When a monopoly advertises, the goal is to _____ because _____. Group of answer choices increase its demand as a share of market demand; the monopoly faces a significant portion of market demand increase market demand; the monopoly faces the entire market demand increase market demand; the monopoly produces a product that is identical to the output of all other sellers in the market increase its demand as a share of market demand; the monopoly faces a small portion of market demand 2. If given a choice, a person would prefer to experience the situation of which of the following families? Group of answer choices a family with income equal to the world poverty line a family with income equal to the United States poverty line a family with income double the world poverty line a family with income equal to the poverty line in the United States in 1970 3. A business using its bargaining power as a major buyer of labor to pay lower prices, including lower wages,…
