Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506893
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 8CQ
(a)
To determine
Determination of a dominance in the market.
(b)
To determine
Size of the firm and the determination of a dominance in the market.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
What are the three major legal forms of business organization? Which form is the most prevalent in terms of numbers? Why do you think that is so? Which form is dominant in terms of total sales? What major advantages of this form of business organization gave rise to its dominance?
why do many economists, pundits, and government officials continue to believe that the state must possess the power to regulate, or even to break up, firms simply because some particular firms are today large or “dominant”?
16-4 A City and Its Unions
Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city’s declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city’s unions and retirees who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash. Why does bankruptcy give the city bargaining power against its unions?
Chapter 10 Solutions
Microeconomics: Private and Public Choice (MindTap Course List)
Knowledge Booster
Similar questions
- what are two examples, of companies’ respecting the rights of employees and of companies’ failing to do so.arrow_forwardExplain why any imperfect market structure is one of the sources of market failures. Give an example by showing graph/calculation and descriptions.arrow_forwardShould the government regulate the market power of firms?arrow_forward
- “Why do industries like electricity or cable TV have just one or two major firms while other industries like restaurants or clothes have hundreds or thousands? What might be a general difference that leads to some industries having many firms while others are dominated by just one or two?”arrow_forward1.In the goods market, we have prices; in the labor market, we have wages or salaries; in the financial market, we have: A)credit B)interest rates C)usury D)principal 2.A certain mining company employs all the workers in a small mountainous community. If all the people of this community do not work for other companies, one can say that the situation with the mining company is a form of: A)Monopsony B)Oligopoly C)Monopoly D)Oligopsony 3.Through collective bargaining, labor unions can negotiate higher wages for union members. However, this might cause _______________ when these union wages are higher than the market equilibrium. A)affirmative action B)a labor strike C)excess demand for labor D)excess supply of labor 4.According to studies, the gap between the earnings of male and female workers can be explained by: A)all the options are correct B)the percentage of men vs. women in top positions in companies C)the expectations that women are likely to bear a…arrow_forwardShould the government regulate the market power of firms why or why not? Make sure you relate the most relevant economic concepts and theory to justify arguments.arrow_forward
- Q 8. The pie-chart given above shows the annual global market share of Pepsi and Coke for the last five years on average. Under what market structure do Pepsi and Coke operate? What microeconomic model can best describe the behavior of Pepsi and Coke? Explain the main theme of this model. Given the obvious market share of both Pepsi and Coke, on what grounds would you justify the multibillion-dollar annual advertising spending by those two companies?arrow_forwardpart D E urgently need I. Two firms, Tac-Burger Ltd. and Back-rib-Burger Ltd., use the same technology to produce output that is given by: Q = 600(F1/2 + M1/3) K where F = Female worker; M = Male worker; K = capital With the price of good (P) set at $1, Tac-Burger pays female an hourly wage WF and male a wage WM. The price of capital (r) is $1 and the quantity of capital is fixed at 1. Back-rib-Burger pays a wage W to both male and female. a. The Press went after Tac-Burger accusing the company of gender discrimination. The CEO replied that their company was in the business to make money and their remuneration policy is consistent with the basic theory of profit maximization taught in basic principles of economics and managerial economics. What convincing argument must be put forward by the press to show that Tac-Burger indeed practices gender discrimination? What proof should the CEO provide to convince the public that the wage practice is fair? b.…arrow_forwardQ8. What role does the U.S. government play with respect to market competition? a.) It preserves competition by regulating prices and intervening in the price and output decisions of businesses. b.) It preserves competition by maintaining abundant government-owned firms to ensure consumer-friendly pricing. c.) It polices anticompetitive behavior and prohibits contracts that restrict competition.arrow_forward
- Some economies are less healthy than they could be because both the market power and economic profit of some favored firms are protected by either government or some private force (e.g. mafia). Present a firm that has market power and is earning economic profit when it is maximizing profit. Explain how competition could help consumers by showing how the profit maximizing point for this firm might change, to the advantage of consumers, if competitors entered this market and competed against this firm.arrow_forwardMost public utilities (gas, electricity, water, and local telephone companies, for instance) are subject to rate of return regulation, under which a firm is allowed to choose its price, subject to its proving that it is not earning too much money. Typically, the firm is allowed to cover its expenditures for labor and material exactly and to earn a "fair" rate of return on its capital investment. Can you think of any problems with this sort of regulatory scheme? In particular, what do you think that this plan does to the firm's incentives to substitute capital for labor?arrow_forwardIndustry A has five firms with market shares as follows: 50, 20,10,10,10 industry B has five firms with markets share as follows: 25. 25, 25, 15, 10 Questions: a) Calculate the CR-4 for industry A and B b) What is the value of n for Industry A and B? Please ASAParrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning