The acquisition of a "cash - rich" company allows the acquiring company Select one:A. to reduce leverage and to increase borrowing powerB. to achieve economies of scale in some phase c the businessC. to reap greater tax benefitsD. to develop monopoly control over the markets
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- Antitrust enforcement is controversial mainlybecausea. cooperative domestic firms are best equipped todeal with international competitors.b. some business practices that seemanticompetitive may in fact have legitimatepurposes.c. excessive competition can drive some firms out ofbusiness, causing job losses.d. vigorous enforcement can reduce businessprofitability, lowering shareholder value.. Can we consider WAPDA a government-created/state monopoly? Was creatingWAPDA bad public policy? Explain.ii. Why is marginal revenue less than the price for monopolies? Can marginal revenueever be negative? Explain.iii. Show the deadweight loss from unregulated monopoly. Explain your answer as itrelates to WAPDA.iv. Describe in detail the Public Policy measures that the government can use to managegovernment-created/state monopolies like WAPDA.Answered: Suppose b X A https://blackboard.vsu.edu/webapps/assessment/take/launch.jsp?course assessment_ id3D_50488 * Question Completion Status: Ou. pcopic WIu mgncr IcoICS SIIOUIU pay gner pricCS uiar unUST WIUI TOWCI ICUIIICS. QUESTION 12 Exhibit 3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine 50 45 40 レATC 35 Price, cots, and 30 25 revenue 20 perdose (dollars) 15 10 MR 1 2 3 4 5 6 7 8 9 10 Quantity of vaccine (hundreds of doses per hour) In Exhibit 9-3, what is the maximum hourly profit that GeneTech can earn from its vaccine? O a. $10,500. O b. $4,500. O C. $1,500. O d. $3,000. QUESTION 13 Click Save amd Submit to save and submit. Click Save All Answers to save all answers. O Type here to search W 99+
- 1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the demand eurve (P) here is larger than the MR, and why Sid won't produce on the inelastic portion of demand curve. b. Draw a graph comparing Sid's market structure with a marketin perfect competition (on the same graph). Be sure to label the components of deadweight loss. c. On a separate graph, show the case where the monopoly is making a positive profit and label the profit area.4. Professor Afano has a monopoly in the market for Intermediate Micro Il textbooks. The time- discounted value of Professor Afano's future earnings is $10,000. Professor Dinero is considering whether to release a competing book. Suppose that with two books on the market the time- discounted value of each professor's future earnings will be $300. Professor Afano is considering strategies to deter Professor Dinero's entry. The professors know profits that are earned by both players in each of the two scenarios (with and without Dinero's entry) and this is a one-shot game with no counteroffers. Assess the rationality of each strategy. Explain your reasoning. Professor Afano threatens to cut his price and attack the credibility of Professor Dinero's book through targeted social media ads. This would result in Professor Dinero losing $8 and Professor Afano earning a time-discounted profit of $700. a. b. C. d. Professor Afano makes a side-deal with Professor Dinero and pays him $200 to stay…Economics Which of the following is the most valid criticism of the regulation of natural monopolies and other firms subjeorfo regulation by regulatory commissions? Select one: O A. Such regulation is unnecessary and amounts to creeping socialiam. O B.Itis difficult to find enough honest people to serve on regulatory commissions O C. Many members of such commissions are appointed rather than being elected OD Regulated firms may have little incentive to contain costs since they are assured a fair return above costs
- Many schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…QUESTION 1 Figure 30 M 43 40 35 30 223 15 10 MO-ATC MR Demand 30 100 190 ane 250 300 3e 400 450 s00 s50 no0 eso 700 750 a00 Refer to the Figure. If there are no fixed costs of production, monopoly profit with perfect price discrinmination equals 6a $1. O b.S1.562 5. OC S3,125. O d. S6.250 QUESTION 2 Amonopoly firm can sell 180 units of output for $12 per unit. Altematively, it can sell 181 units of output for $11.98 per umit. The marginal revenue of the 181st mit of output is 1a-56.98. Ob.$6.98. 1P SS.38. 14SL98. QUESTION 3 Clck Save od SuhteSuppose there are two firms, and they are able to coordinate with each other. What are the expected profits for each firm if they successfully collude and split the market output equally? The answer has to be a number louin which only to trim 1 and 2 stud producer for de her dece how rare pers to pan and bring to town The Tes cenere fr ( Price Test Revenue land Total Pro 73 ༡ བྷསྶཀྐཏྟཊྛགྒཊྛངྒཱཊྛཱརཱབྷིཛྫོ 120 0 110 100 2000 93 2700 33 5000 71 2000 53 3840 50 3500 31 2010 130 20 2000 110 90 1133 130 4 ሰ
- ం వయడు Firms in Marçaa cost =o for Goth • FicmsAroduce Fir Twe firms 20 bertrand compotition for both diffrencided poduts, oms Sunction have the fallowing inverse denand शि= | -01- 203 pz=1-92-5 a Defue repried 6 Denve Rertrand equilbba Bertrand reaction functio) and diagremadticalde 5) madirall Deుల and equilubi gauntitier,pricer Arofits.50 40 30 20 10 200 400 600 B00 1000 Quantity per period Suppose there are no fixed costs and marginal cost is a constant $30. a. What sre the perfectiy competitve price and output? Price: $ 30 0 Output: 500 b. What are the cartel (monopoly) price snd output? Price: S 40 0 Output: 300 O c lfthere are only four firms in the cartel, what are the price and output of esch firm, assuming equal shares? Round your anawers to 1 decimal plece. Price:$ 40 0 Output: 75 0 sanuana pue SsogExercise 5. You are the manager for a monopoly with costs, demand, and marginal revenueas in the graph at the top on Figure 1. a. Suppose economic conditions change in such a way that the demand curve for yourcompany shifts left.b. Draw a demand curve on the bottom graph on Figure 1 that leads to zero economicprofits.c. Draw a demand curve on the bottom graph on Figure 1 such that any furtherleftward demand shift will cause you to shutdown.
