In the UK, Value Added Tax (VAT) rose to 20% in January 2011. Examine the impact of this increase on the equilibrium prices paid and quantities consumed by consumers in markets characterised by: a. Cournot oligopoly Bertrand oligopoly.
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- Monopolies are viewed differently by economists and businesspersons. Which of the following would likely be most important to a businessperson when thinking about monopolies? Check all that apply. The quantity enjoyed by consumers in a market with monopoly versus competitive industries. The consumer surplus that results from monopoly compared to competitive industries. Comparing and contrasting consumer demand found in monopoly and competitive industries. The specifics of how a group of local roofers founded an association to seek government licensing requirements for all roofers.When oil prices increased 10 fold during the 1973 – 80 energy crisis, many oil companies made huge profits. During this energy crisis, Congress considered imposing an “excess profits” tax on oil companies. If you were in Congress, would you vote for such a tax? Do unexpected monopolistic profits serve any useful function in a market economy?Briefly contrast the difference between equilibrium market outcomes in a monopoly, oligopoly, and perfect competition.
- The four types of market structures we study in economics are perfect competition, monopoly, oligopoly, and monopsony. True False Monopolies, since no close substitutes nor competitors exist, can price whatever they want and still maximize total revenues. True False As competition increases in markets, the demand curve for products becomes more price elastic and downward pressure on prices tends to ensue. True FalseWhich of the following markets would have the least amount of concentrated power? Oligopolistic Monopolistic Competitive UndergroundExplain how monopolies employ average cost pricing
- What are monopolies and oligopolies? How do they tend to differ from businesses in a market where there is free-market competition? Why do they exhibit such differences?In 1983, Motorola accounted for seventy five percent of the mobile phone market. In the early days of the market, the company’s only serious competitor was Finnish multinational Nokia which indicated an oligopoly market. Illustrate using a detailed diagram how equilibrium price and quantity are determined in this industry.There are four main forms of market, namely pure competitive market, monopolistic competition market, and marketoligopoly, and the monopoly market. These four forms of market can be viewed from the seller's point of view or in terms ofbuyer. Explain the difference between Pure Competition and Pure Monopoly Market!
- The diagram below illustrates the change in market equilibrium in the global oil market due to a demand shock, with the demand curve shifting from Demand to Demand'. Supply of oil is provided by OPEC countries, as part of a cartel agreement, and other countries outside the cartel, P. P. Demand Demand Quantity, Q Q Q. Which of the following statements is/are correct? global a) If more countries joined OPEC, and reduced the quantity of oil that they produced as a cartel, it is possible that market oil price could stay the same depending on other market dynamics. b) The price of oil in the global market is fixed by the members of the OPEC cartel. c) If there is increased production of oil in a non-OPEC country when demand is at Demand' there would be a reduction in price from P1, ceteris paribus.What are the Characteristics of a Monopolistic Competition Market? What are the Characteristics of an Oligopoly Market?What is the term used to describe a situation where the price of a good or service is determined by the market forces of supply and demand without government intervention?A) MonopolyB) OligopolyC) Perfect competitionD) Monopolistic competition.