The opioid epidemic causing a staggering number of deaths each year in the United States is largely caused by two drugs: heroin and fentanyl. Much of the heroin is supplied by several major organized Mexican cartels while the much stronger fentanyl is mostly produced in hundreds of labs (big and small) in China. The market structure for heroin can be considered as an oligopoly that operates as a monopoly. On the other hand, the fentanyl industry is less organized in terms of cartel organization and therefore more competitive. How do the differences in the organization of both industries explain why deaths from fentanyl have skyrocketed in recent years? The organized heroin cartel A.does not have barriers to market entry. The more competitive fentanyl industry has substantial barriers to entry, making fentanyl a more available drug. B.has the ability to control quantity and raise the prices. The more competitive fentanyl industry makes more of the drug available at a lower price. C.makes the drug at a lower price. The more competitive fentanyl industry has the ability to control quantity and raise the price. D.is a price taker. In the more competitive fentanyl industry, Chinese suppliers are price makers, making fentanyl a more available drug.
The opioid epidemic causing a staggering number of deaths each year in the United States is largely caused by two drugs: heroin and fentanyl. Much of the heroin is supplied by several major organized Mexican cartels while the much stronger fentanyl is mostly produced in hundreds of labs (big and small) in China. The market structure for heroin can be considered as an oligopoly that operates as a monopoly. On the other hand, the fentanyl industry is less organized in terms of cartel organization and therefore more competitive. How do the differences in the organization of both industries explain why deaths from fentanyl have skyrocketed in recent years? The organized heroin cartel A.does not have barriers to market entry. The more competitive fentanyl industry has substantial barriers to entry, making fentanyl a more available drug. B.has the ability to control quantity and raise the prices. The more competitive fentanyl industry makes more of the drug available at a lower price. C.makes the drug at a lower price. The more competitive fentanyl industry has the ability to control quantity and raise the price. D.is a price taker. In the more competitive fentanyl industry, Chinese suppliers are price makers, making fentanyl a more available drug.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 13SQ
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The opioid epidemic causing a staggering number of deaths each year in the United States is largely caused by two drugs: heroin and fentanyl. Much of the heroin is supplied by several major organized Mexican cartels while the much stronger fentanyl is mostly produced in hundreds of labs (big and small) in China. The market structure for heroin can be considered as an oligopoly that operates as a
How do the differences in the organization of both industries explain why deaths from fentanyl have skyrocketed in recent years?
The organized heroin cartel
A.does not have barriers to market entry. The more competitive fentanyl industry has substantial barriers to entry, making fentanyl a more available drug.
B.has the ability to control quantity and raise the prices. The more competitive fentanyl industry makes more of the drug available at a lower price.
C.makes the drug at a lower price. The more competitive fentanyl industry has the ability to control quantity and raise the price.
D.is a price taker. In the more competitive fentanyl industry, Chinese suppliers are price makers, making fentanyl a more available drug.
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