Chapter 14, Problem 4DQ

The New York Times has stated that Mylan, the company that makes the now infamous Epipen, has become “the poster boy for out of control drug prices.” Why did this Pittsburgh-based company raise prices so much that Americans pay three times as much as Canadians for the same drug? Do you think patents are good for society?

Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices?

Is Price Discrimination a case of monopoly only? If yes, then why and how? Why is it favorable to monopolist? And what are the reasons for this act?

Our textbook discusses two methods of regulating natural monopolies. One of them is price cap regulation. One of the following answers is an example of price cap regulation. Which one? Group of answer choices A government setting the price that a cable company can charge over a period of time by looking at the cable company's accounting costs and then adding a normal rate of profit. A government setting a price level for a public utility several years in advance. When a regulated public utility plays a large role in setting up the regulations that they will follow. When a firm no longer is considered a natural monopoly because of decreased demand.

What are the necessary conditions for a monopoly position in the market to be established? Please provide APA citations thank you.

Please see the images of the article below and help answer questions. 1. Evaluate this statement: "Whereas a competitive firm must sell at the market price, a monopoly owns its market, so it can set its own prices.  Since it has no competition, it produces at the quantity and price combination that maximizes its profits."  Must a perfectly competitive firm sell at a market-clearing price?  Alternatively, is the market-clearing price the profit-maximizing price that a competitive firm chooses to set?  Can a monopolist set any (price, quantity) combination? 2. Evaluate this statement: "Monopolies drive progress because the promise of years or even decades of monopoly profits provides a powerful incentive to innovate.  Then monopolies can keep innovating because profits enable them to make the long-term plans and finance the ambitious research projects that firms locked in competition can't dream of."  Cite a counter-example to this claim in which deregulation of a monopolist led to lower…

When regulators impose a marginal cost or average total cost pricing strategy to regulate a monopolist,  which of the following will most likely NOT occur?   Question 15 options:   a)  an economic loss    b)  an incentive to reduce cost   c)   a subsidy    d)  none of the above

In the following table, which contains the demand schedule for a monopolist, enter the total revenue (TR) and marginal revenue (MR) for each price. For each price–quantity combination (that is, table row), indicate whether demand is elastic, unitary elastic, or inelastic at that point on the demand curve. Hint: Do not calculate the price elasticity of demand mathematically. Instead, use what you know about elasticity along different segments of a linear demand curve to determine the elasticity of each price–quantity combination.