Which of the following is not considered a barrier to entry? Economies of scale Patents Control of a scarce resource Licensing Perfect price discrimination
Q: Discuss advantages and disadvantages of monopoly and perfect competition market structures. Would a…
A: A monopoly is a company's dominant position in an industry or sector such that it has the ability to…
Q: Economic theory leads to the conclusion that an unregulated market that is controlled by a monopoly…
A: Economic efficiency is central to microeconomics because it helps us probe how markets work (its…
Q: When does a company officially become a monopoly? a. when it controls more than 25 percent of the…
A: Answer: A pure monopoly occurs when a single firm provides all the output. But for the purpose of…
Q: Government should regulate mergers between firms” Give reason in favor and against this statement
A: Mergers refers to combine two seprate business into a single new legal entity. for instance, Company…
Q: Based on the literature ,demonstrate the differences between free competition and monopoly. Refer…
A: "Market structures" relate to the various market factors that affect how sellers interact with one…
Q: which of the following can create a monopoly I. high prices II. public franchise III. patent…
A: monopoly refers to a market structure in which there is only a single seller of a commodity. The…
Q: Discuss the dilemma of regulation faced by the government in the case of regulating monopoly?
A: A monopoly Market structure is one of the 4 main important market structure run by a single…
Q: Natural monopolies result from patents and copyrights. pricing strategies.…
A: Monopolies are the market form in which there is single seller selling unique product at high…
Q: . Classify the following as a government-enforced barrier to entry, a barrier to entry that is not…
A: A) govt enforced barriers to entry Because govt provides patent for a fixed period to inventions so…
Q: Justify protection of patent based on social cost,sunk cost and social benefit theory.
A: Patents protect intellectual property rights. Through patents, an inventor can protect his…
Q: The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5…
A: Since you have asked a question with multiple subparts, we will answer the first three subparts for…
Q: A monopoly occurs when there are barriers entering the market. List 3 types of these barriers with…
A: 1. Legal barriers - In some cases, the government sets up legal barriers to enter into the market in…
Q: In a pure monopoly, modern technology means that some industries can only achieve efficient and…
A: Within a given market or industry, a pure monopoly is defined as a single supplier. In this case,…
Q: Which of the following types of intellectual property is valid for up to 20 years and can not be…
A: Answer: Patent, Copyright, and Trademark are the three legal rights to protect the intellectual…
Q: The Canadian Radio-Television Commission (CRTC) makes decisions about who can be licensed to operate…
A: The Canadian government does have the right to intervene in this matter. The CRTC was formed in the…
Q: how is the way an unregulated monopoly sets its price different from how products are priced in a…
A: Unregulated monopoly is characterised by A market with single seller No statutory ceiling price…
Q: Patent laws are related to positive externality of R&D. Essentially patents makes invention of new…
A: A company's research and development (R&D) can be a beneficial externality. R&D not only…
Q: Which of the following is not an artificial barrier to entry into a monopoly market? Answers:…
A: Artificial barriers to entry are those which deals with patents and licensing requirements. In case…
Q: In Monopoly at various output levels
A: To find : What is various output levels in monopoly.
Q: All of the following can break a monopoly EXCEPT a. increased barriers to entry b. technology and…
A: Monopoly is a market structure in which there us one single seller in the whole market.
Q: “The social desirability of any particular firm should be judged not on the basis of its market…
A: The monopoly is a firm that is a single producer of a good and that firm will supply to the whole…
Q: barriers to entry and public franchises are Patents are parriers to entry ) legal; legal D legal;…
A: Patents are Legal barriers to entry as O ly companies which has the patent can use that technology…
Q: Draw a sketch of the graph to answer the following question: When the demand curve is more elastic,…
A: The price charged by the monopolist is greater than the marginal cost of production and extend to…
Q: All barriers to entry are not created through market conditions. Barriers to entry, such as patents,…
A: Barriers to entry are used to block the new entry of other firms into the market because, the new…
Q: Question 3 Which of the following is not an example of a barrier to entry? Group of answer choices…
A: Barriers to entry are defined as factors that can prevent new firms to enter the industry to limit…
Q: Country Transition from Short - Run to Long - Run Equilibrium in the Monopolystically Competitive…
A: Monopolistic Competition When there are several firms in the market who is selling products that are…
Q: Identify the type of barrier to entry. (Natural barriers to entry, Ownership barrier to entry, Legal…
A: In anti-competitive markets, there are types of entry and exit barriers associated with specfiic…
Q: Examples of deregulated markets
A: Deregulation refers to the removal of government intervention or other forms of barriers from a…
Q: Determine if each example represents a barrier to entry or not. a. Pfizer is the only firm that is…
A: In a market, barriers to entry refers to the situation when new firm faces difficulties to enter or…
Q: Analyze Monopoly market structure
A: We show the Monopoly is a single retailer market and it has a hundred percent share of all market…
Q: Which of the following is not a barrier to entry? Select one: a.Licensing b.Large set up costs…
A: The barrier to entry refers to a condition that prevents the firms from entering the market.
Q: Advantages and disadvantages of a state owned monopoly enterprise
A: Introduction In economics, a government monopoly or public monopoly is a structure of coercive…
Q: Exhibit 12.4 The Market Demand Curve for Claritin Price $8 With patent protection from the…
A:
Q: Which of the following is least likely to present a barrier to entry into a market? patent laws…
A: In economics, barriers to entry refers to the economic factor that prevent new firms from entering…
Q: Which of the following is NOT a barrier to entry
A: Barriers of entry restricts the new firms from entering the market. In a market structure…
Q: Which of the following is NOT an entry barrier related to technology?
A: Barriers to entry are the obstacles that make it difficult for new firms to enter into existing…
Q: According to Brozen, which of the following groups benefitted from monopoly returns in the shipping…
A: Brozen has authored a book in which he has discussed in detail the groups that are benefitted from…
Q: (13) A monopolist is a price- Select one: a. taker. b. maker. c. blocker. (14) A trademark is an…
A: Monopoly is a form of market in which there is one seller in the market.
Q: may inc
A: 1. A specific tax increases the price of all equally and in turn has a bigger effect upon reduction…
Q: Which of the following is not an example of an entry barrier? Group of answer choices Capital…
A: Entry barrier refers to the factor that discourages the firm to enter the market. Barriers to entry…
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- Once a monopolist has determined its profit-maximizing (equilibrium) quantity of output, QM, which condition does it use to set the price? Question 9Answer a. None of the other options are correct b. Price = Demand at QM c. Price = Average Cost at QM d. Price = Marginal Cost at QMProblem 2Suppose an airline has monopoly over a certain route. The estimated price elasticity of demand for business travelers is EB=-1.9, while the price elasticity of demand for leisure travelers is EV=-2.1. The airline wants to set the prices separately for business and vacation travelers.a) If the marginal cost of transporting each passenger is the same, and the airline is able to separate the two groups perfectly, what is the optimal surcharge (in %) on business travelers? (for example, if leisure travelers pay 100, and business travelers pay 200, then the surcharge is 100%)Answer= b) Suppose that in order to separate business travelers, the airline must offer them slightly better conditions on board (for example, serve them a meal). As a result, the marginal cost of flying a business traveler is 30% higher than for a leisure traveler. What is the optimal surcharge (in %) on business travelers in this case?Answer= c) Now suppose the airline introduces a Basic Economy fare, where…A city in a developing country does not have a provider of water and sanitation services, leading to poor health outcomes for its citizens. A firm is considering entering thatmarket. The cost curve is C(g) = 10 + 2q, and the inverse demand is P(g) = 10-q. Thegovernment of that city knows that, because of the high fixed cost to operate in this market, any entrant is likely to become a monopolist. Thus, they decide to implement the following regulation: the firm is not allowed to choose a price above an upper limit of p (which the government chooses and sets in the law before the firm decides to enter).There will be no transfers between the government and the firm.Assume that the firm only enters the market if it can get profits of at least zero, given the government's choice of p. Suppose that the government's goal is to maximize consumer surplus. Which of the following statements is the most correct? The government needs to set p = 2, because it's the marginal cost. That eliminatesthe…
- True/False In monopoly there are high barriers to enter the market.All consumers are alike and each has an demand curve for a monopolist’s product of P=100-2Qd. The marginal cost of production is constant at MC = $10. Let the monopolist charge a price of $10 per unit purchased and a subscription fee of $2025 that must be paid by each purchaser. What is the amount of consumer’s surplus left over by this scheme?On the market of good Y there are 50 identical consumers. Each consumer has a demand function q=300-2pGood Y is produced by a monopolist, which is operating with a constant marginal cost of 50 and a fixed cost of 2000. Suppose the monopolist implements a two-part tariff pricing strategy. Calculate the maximum profit
- A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. Specififically, he estimates the following average demands: • Under 25: qr= 18 − 5p • Over 25: q = 10 − 2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the nightclub $2 each. (a) If the market cannot be segmented, what is the uniform monopoly price? (b) If the nightclub can charge according to whether or not the customer is a student but is limited to linear pricing, what price (per drink) should be set for each group? (c) If the nightclub can set a separate cover charge and price per drink for each group, what two-part pricing schemes should it choose? (d) Now suppose that it is impossible to distinguish between types. If the nightclub lowered drink prices to $2 and still wanted to attract both types of consumers, what cover charge would it set? (e) Suppose that the nightclub again restricts itself…In order for a monopolist to sell a quantity of 12 units, the price must be $6. Marginal revenue at this quantity will be: Group of answer choices > $6 and < $12 = $6 < $6 > $12Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=408-2P. Its only cost is a Marginal Cost is MC=Q What is the (absolute) deadweight loss due to monopoly?
- Assume quantities need not be integers. Assume a profit maximizing monopolist with marginal cost equal to $4 faces demand MWTP(Q) = 14 - 2Q. Assuming it must charge the same price for each unit it sells, what is elasticity of demand at the price it chooses?Assume quantities need not be integers. A monopolist constrained to charging the same price for each unit faces a linear demand curve and a constant marginal cost equal to $20. Demand is unit elastic at $100. Which of the following is true? A. A per-item price of $100 maximizes producer surplus. B. A per-item price of $100 maximizes total surplus. C. Revenues increase as it increases price from $100. D. Profits increase as it increases price from $100 E. Variable costs increase as it increases price from $100A monopolist can earn above normal profit entry by other firms will occur. True or false