Subject: Manegerial economics & policy Mcq's 15) Which of the following is an example of natural monopoly a) vegetable markets b) clothing retail shops c) natural gas d) None of the above
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Subject: Manegerial economics & policy
Mcq's
15) Which of the following is an example of natural
a) vegetable markets
b) clothing retail shops
c) natural gas
d) None of the above
Step by step
Solved in 2 steps
- restion 1 of 15 Market Power and Monopoly- End of Chapter Problem Consumers in Carlandia are willing to purchase up to 100,000 cars cach year. Suppose the accompanying graph represents the long-run average cost curve for auto producers in Carlandia. Costs ($/unit) $40,000 30,000 20,000 10,000 LAC Quantity (thousands) Goolsbee et al., Microeconomics, 3e, 2020 Worth 10 20 30 40 50 60 70 80 90 100, Publishers a. If the supply side of Carlandia's auto market has 10 b. If the supply side of Carlandia's auto market is served identical firms operating, what is the lowest potential price by a monopolist, what is the lowest potential price that consumers might be able to purchase a car for? O S10,000 that consumers might be able to purchase a car for? O 30,000 O $40,000 O 330.000 O $20,000 O $20,000 O $10,000 O $40,000 a. If the supply side of Carlandia's auto market has 10 b. If the supply side of Carlandia's auto market is served identical firms operating, what is the lowest potential price…Question 4 Explain Microeconomic electricity theory?. Differentiate between monopoly and With a diagram, explain the game between consumers and producers in the electricityTable: Prices and Demand Quantity of Hats Demanded 0 1 2345699 7 8 Price per Hat $30 XHHNARY 28 26 24 22 20 18 16 14 (Ref 27-8 Table: Prices and Demand) Use Table 27-8: Prices and Demand. The New Orleans Saints have a monopoly on Saints logo baseball hats. The Saints sell at most 1 hat to each customer, and the table shows each customer's willingness to pay. The marginal cost of producing a hat is $18, and there are no fixed costs. How much is the Saints' profit at the profit-maximizing output? O a. $18 O b. $24 O c. $12 O d. $30
- Question 4 i. ii. iii. A monopoly can be recognized by certain characteristics that set it aside from the other market structures. Explain why a monopoly firm is a price-maker in microeconomics. The opponent of monopoly argued that the monopoly power will result to a social cost. Explain why. A perfectly competitive market has the opposite characteristics or conditions from the monopoly market, describe THREE (3) characteristics or conditions of the perfectly Competitive market structure.Price EQ A Market for Product X B S Quantity If the market for Product X is a monopoly, how might the business that produces Product X raise the equilibrium price of the product? D The business can increase production of product X, because doing so would shift the supply curve left and create a surplus. The business can increase production of product X, because doing so would shift the supply curve right and create(a) If you are the owner of the only bookstore in a small town, do you have a monopoly? Explain. (b) Draw graph and explain the inefficiency of a monopoly firm such as public sector provision of electricity.
- 3. Using the cost curves for the monopolist (right), answer the questions 3a - 3d below: a. Indicate where the monopolist maximizes profits, output is equal to b. The monopoly price that maximizes profits is c. What is the maximum profit the firm can earn from its product? d. When the monopolist is maximizing total profit, the average total cost of producing that output level is? Price (dollars) 10 6 4 0 MR 6 Quantity T 11 ||| 8 9 10 MC ATC DAssignment 7 1. Suppose the government provides a subsidy to the monopoly. Illustrate: (1) consumer surplus; (H) producer surplus; (i) government cost; and (iv) social surplus with the subsidy. P Market dend cune MC wi whity MC wih tdy 2. Consider a market with a monopoly shown in the figure below. Suppose the government provides a subsidy to cosumers that achieves the efficient outcome. Use diagrams to illustrate: (1) consumer surplus; (i) producer surplus; (ii) government cost; and (iv) social surplus with this subsidy. 3. Consider a market with a monopoly. The market demand curve, as well as the monopoly's marginal revenue and marginal cost curves are shown below. The shaded area indicates the producer surplus at the monopoly outcome. Find another area that also represents the producer surplus at the monopoly outcome.O Macmillan Learning The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits. 1. Place point E at the monopoly's profit maximizing price and quantity. 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. Price ($ per unit) 10 9 8 7 6 5 3 2 1 0 0 1 E K MR 2 3 4 5 6 Quantity (millions of units) 7 MC 8 D ATC 9 10 Profit
- 3. Singer Britney Spears has a monopoly over a scarce resource: herself. She is the only person who can produce a Britney Spears concert. Does this fact imply that the Government should regulate the prices of her concerts? Why? Or why not?DAU BAUGO BA ECO2066 (2) Mathem... Overview Plans Resources Follow-up and reports Participants More Question 1 Given a monopolist which has identified two submarkets of buyers for its product with demand schedules: Q, = 400- 4P, and Q2 = 300 - 5P, The total cost curve of the monopolist is C(Q)- 20Q + 100 Q = Q1 + Q2 • Determine the profit maximizing outputs and prices in the two submarkets and the total profits of the monopolist under price discrimination. Calculate the price elasticity of demand in each submarket at the profit maximizing output levels. • Determine the profit maximizing output, price and profit if the monopolist does not practice price discrimination. Your answer: BIU A- A- Q = S : x, x" OG临向? Font Size HE 10:20 23°C Kismen güneşli A O TUR 21.06.2021 41W PriSc Ineert Deleie F1 101 7 ( 8.1. Monopoly Pricing. A Graphical Analysis. The two panel graph below illustrates the market for canned peaches (in the left panel) and cost conditions for a representative firm. Assume that the peach industry is competitive. P Pc a. In the rightmost panel illustrate the optimal output, price and profit levels for the competitive firm. D Market MC ATC Firm Q* b. Suppose that due to concerns regarding the paucity of domestic peach producers the government gives to USA Peaches Inc. an exclusive right to domestically produce and sell canned peaches. In your above graphs circle the components in the competitive market and firm charts that you would use to generate predictions for the monopolist.