Producer surplus will be the same in a monopoly and in a competitive market if aggregate demand and cost functions are identical in both markets. (a) True. (b) False.
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(a) True. (b) False.
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- A natural gas company has a low average total cost due to its large scale production. The initial cost of setting up the infrastructure, such as pipes and hoses, makes it risky and, most likely, unprofitable for competitors to enter the market. Which barriers to entry appropriately explains why this monopoly exists? Group of answer choices Economies of Scale Legal Monopoly Control of a Physical ResourceA natural monopoly exists when Question 3 options: a) the product is sold in its natural condition b) there are economies of scale over the entire range of output c) the firm is always characterized by a rising marginal cost curve d) production requires only natural renewable resourcesA market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) How much will the dominant firm supply to the market at the price found in question (a)? Show the answers graphically
- 1. The market demand function of a perfectly competitive market is Q=500-p, and the cost function of an individual company is C(q)=q^3-20q^2+110q. Suppose that the government imposes a tax of 10 per unit of transaction on companies. In the long-term equilibrium, find K-L when you indicate the number of companies as L and the market price as K. Find W1 - W2, W1 is when no tax is imposed, and W2 is when the government imposes a tax of 10 per unit of transaction on an enterprise.The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. If the Marginal Cost for each seat is $16 and Market demand is Q=494-4P, what is the market ticket PRICE the Guild chooses?It is one of the barriers to entry when average cost continually decreases with output, implying that a single firm achieves the lowest possible unit cost by supplying the entire market. a. economies of scale b. control or resources c. strategic barriers d. pure quality and cost advantages
- A country is the only production site in the world for "hyperhoney infinite pasta", a wonderful product produced using a delicate, highly perishable extract obtainable from some trees that grow only in this country. Beyond a very small size, there are no internal or external scale economies at present. Furthermore, there is no domestic demand for this product in the country, so all production will be exported. The country’s government has the choice of forming the pasta-producing industry either as a monopoly or as a large number of small pasta producers that will act as perfect competitors. What is your advice to the country’s government about which market structure to choose for the pasta industry? Why?A market consists of a dominant firm and a number of fringe firms. The followings are the information about these firms. Total market demand: QALL=300 – (2.5) P The competitive fringe supply function (total): QF=2P-12 The dominant firms marginal cost function: MC = 12 + (1⁄2) QD. a) What is the equilibrium price set by the dominant firm? b) How much will the competitive fringe supply to the market at the price found in question (a)? Show the answers graphically.XYZ company uses a technology for producing its good. This enables the firm to meet the entire market demand at a lower price than its two competitors. What factor makes XYZ company a monopolist? a. increasing average total costs. b. a legal barrier to entry. c. Knowledge of exclusive production techniques d. All of these
- Q.5 Deprive monopoly demand for an input when several inputs are used in the production process. (Explain Minimum 2000 words... Only 15 percent plagiarism allowed.)Suppose that a lunar mining company discovers a new kryptonite deposit on the moon . This discovery allows it to have monopoly power in the market for kryptonite back on Earth. This source of monopoly power is due to Question 7 options: copyrights diseconomies of scale product differentiation exclusive control of a raw material trade barriersGive only typing answer with explanation and conclusion The market demand for a monopoly firm is estimated to be: Qd = 100,000 - 500P + 2M + 500PR where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be AVC = 520 - 0.03Q + 0.000001Q2 Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is $80. $100. $260. $520. $560.
