EBK PRINCIPLES OF MICROECONOMICS
7th Edition
ISBN: 8220101472380
Author: Mankiw
Publisher: CENGAGE L
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Chapter 11, Problem 5CQQ
To determine
Characteristic of a public good.
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This is a form of governmental public policy that has been implemented to reduce the purchase of cigarettes and alcohol.
A.Marketing limitations
B.Raising the legal age
C.Vending machine regulations
D.Taxation
Common resources area. efficiently provided by market forces.b. underprovided in the absence of government.c. overused in the absence of government.d. a type of natural monopoly.
Public goods area. efficiently provided by market forces.b. underprovided in the absence of government.c. overused in the absence of government.d. a type of natural monopoly.
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EBK PRINCIPLES OF MICROECONOMICS
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- Compared to the social optimum, a monopoly firm chooses a. a quantity that is too low and a price that is too high. b. a quantity that is too high and a price that is too low. c. a quantity and a price that are both too high. d. a quantity and a price that are both too low.arrow_forwardAn example of a barrier to entry in a market is:A. Lack of profitable opportunities.B. Increasing cost of production.C. Inelastic market demand.D. Government licensing requirement.arrow_forwardThe deadweight loss in a monopoly occurs because: A. The monopolist produces less than the socially optimal output level.B. There is perfect competition in the market.C. The monopolist is forced to produce at a loss due to government intervention.D. Consumer surplus is maximized at the monopoly price.arrow_forward
- Please submit the answer and then watch the video feedback.Farmer Ted sells 1,000 bushels of wheat at a price of $5 per bushel in a competitive market. Wilma sells 5 gallons of water at a price of $5 per gallon in a monopoly market. If both Farmer Ted and Wilma want to sell a higher quantity, what happens to their respective prices? a.Farmer Ted's price remains constant and Wilma's price decreases. b.Farmer Ted's price decreases and Wilma's price remains constant. c.Farmer Ted's price remains constant and Wilma's price increases. d.Both Farmer Ted's and Wilma's prices decrease.arrow_forwarda. On a graph, show the quantity of beehives that the beekeeper will choose if there are barriers to negotiation with the orchardist and show how subsidizing beehives can lead to the efficient quantity. b. On another graph show how subsidizing honey can lead to the efficient quantity.arrow_forwardMarket failure can be caused by Select one: a. externalities and market power Ob. government intervention and price controls O c. high prices and foreign competition d. low consumer demandarrow_forward
- When governments deregulate an industry, using economic theory, explain what governments want to achieve in terms of social-well being.arrow_forwardWhich of the following is NOT an example of government intervention in the market? a. Corporate social responsibility b. Use of competition policy to prevent mergers c. Regulation prices d. Legislation banning the sale of the productarrow_forwardIn which case is there no evidence of market failure? a. Intense competition in a fruit market b. A steel plant pollutes a nearby river c. Buyers of goods are uncertain about their quality d. A monopoly maximises its profitsarrow_forward
- Each of these are possible benefits from a monopoly EXCEPT A. the ability to minimize deadweight loss from production. B. potential economies of scale from production. C. more jobs in research and development. D. new innovations in technology and in the creative arts.arrow_forwardA market structure that is “monopoly” is NOT ... Group of answer choices a. production efficient b. allocation efficient c. neither allocation nor production efficientarrow_forwardIs a monopoly always bad for society? a. No. For example, patents on medications create monopolies, and increase the price and reduce the quantity sold, but without them, no one would take the high costs of developing new drugs and the quantity will be... zero! b.Monopoly is not bad if its owner gives back to society in charity. c.Yes, Monopoly is always bad d. None of the other answers is correctarrow_forward
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