Define economic efficiency in terms of production costs and products prices. Why are purely competitive industries and economically efficient and monopoly are not efficient?
Q: When can a market exercise a strong monopoly? And what could be the best possible examples of firms…
A: The markets are the place where the buyers of the goods and other products tend to meet, and…
Q: Is the all-or-nothing strategy more efficient than monopoly decision for the society? Explain.
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Q: When does a company officially become a monopoly? a. when it controls more than 25 percent of the…
A: Answer: A pure monopoly occurs when a single firm provides all the output. But for the purpose of…
Q: Why does monopoly arise? How does monopoly make profit and loss? Graphically explain
A: Monopoly can arise by the following : Monopoly can arise, given that there is only one business…
Q: which of the following can create a monopoly I. high prices II. public franchise III. patent…
A: monopoly refers to a market structure in which there is only a single seller of a commodity. The…
Q: 2.Tammy sells woolen hats in a perfectly competitive market. The marginal cost of producing 1 hat is…
A: The solutions to the three questions are as under:
Q: Question 38 An unregulated monopoly finds that its marginal cost exceeds its marginal revenue. In…
A: If a Monopolist is experiencing higher Marginal cost than marginal revenue, it is the situation when…
Q: Draw a diagram to show the difference in output and price between a perfectly competitive firm and…
A: Perfect competition occurs when all companies sell identical products, market share does not…
Q: Assume that the marginal cost curve is given by mc(q) = 10+ 2q. The demand is equal to qd = 130 – p…
A: MC = 10 + 2q Q = 130 - p MR = 130 -2q ATC = 10 + 100/q + q
Q: Using a real life example, explain that is meant by a ‘natural monopoly’. What are at least 3…
A: A natural monopoly is a monopoly in which the largest supplier in an industry, generally the first…
Q: Q5. Write short notes on the following. i) Loss in monopoly ii) Consumer surplus iii) Allocative…
A: Marginal cost is the change in the total cost due to the increment of one additional unit in the…
Q: A. What is meant by the change in the quantity demanded and the change in demand support your answer…
A: Hi Student, Thanks or posting the question. As per the guideline, we are providing answer for the…
Q: All of the following are examples of intellectual property rights, except: Select the correct answer…
A: Intellectual property (IP) alludes to manifestations of the psyche, like creations; abstract and…
Q: Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public…
A: The monopoly created by the government is the scenario in which the government allows only one…
Q: 1. A general rise in the level of prices is called a. free enterprise. b. inflation. c. gross…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: barrier to entry that is not government-enforced, or a
A: A) govt enforced barrier to entry In this case govt is fixing the license it will issue so it…
Q: 12. What is the best example of competition in capitalism? When McDonalds and Burger King compete by…
A: Competition in capitalism takes place when two entities compete with each other to get some profit,…
Q: The government grants which of the following to protect the property rights of writers and…
A: The entities in the economy work with different objectives, and are involved in different entities.…
Q: Will an unregulated monopoly end up with normal or with economics profits? Why or why not?
A: A monopoly is a market structure in which there is a sole seller and has control over the market…
Q: Why do all industries, except pure competition, not reach efficiency? What types of efficiency are…
A: Answer (50) Pure competition is a market situation where : products are homogenous there are a very…
Q: Which of the following is not an artificial barrier to entry into a monopoly market? Answers:…
A: Artificial barriers to entry are those which deals with patents and licensing requirements. In case…
Q: Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The table gives the monthly demand and costs for subscriptions to basic cable for Comcast, a cable…
A: Monopoly refers to the market structure where there is a single firm and a large number of buyers…
Q: Explain THREE (3) reasons why the opponent of monopoly argued that the monopoly power will result to…
A: A monopoly is a business that is viably the main supplier of a decent or administration, giving it a…
Q: How can we avoid monopolies being created in the Indian economy? Explain with a couple of examples.
A: A monopoly is when one business holds a dominant position in an industry or area to the point where…
Q: What is the main social problem caused by monopoly? A. excessive monopoly profits B. an…
A: In a monopoly, Marginal revenue curve lies below the demand curve. This implies, the seller has to…
Q: What is a monopoly? What are the benefits and costs of monopoly?
A: Answer: (1). Monopoly: monopoly refers to the market structure where there is a single seller and a…
Q: out the table below. Unit Marginal Marginal Quantity (Q) Price (P)…
A: Marginal cost = TC2 – TC1 Marginal revenue = TR2 – TR1 Profit = TR - TC
Q: If patents, copyrights, and trademarks reduce competition, why does the federal government grant…
A: If patents, copyrights, and trademarks reduce competition, why does the federal government grant…
Q: Fill out the table below. Unit Marginal Marginal Quantity (Q) Price (P)…
A: Formula's to solve above question, Total revenue TR = Price * Quantity Marginal revenue = (TR2 -…
Q: a. In the short run, if a perfectly competitive firm produced at the quantity of productive…
A: a. In perfect competition, there is a large number of buyers and sellers, and firms in perfect…
Q: Modern business practices do not usually result in violent outbreaks. Why might governments in the…
A: First part To protect consumers' interests, the government may desire to regulate monopolies.…
Q: Define economic efficiency in terms of production costs and product prices. Okay by are purely…
A: When every scarce resource in an economy is used and divided among producers and consumers to…
Q: Which industry approximates the monopoly among the following? A. Petroleum B. Microsoft…
A: Option (B).
Q: How does monopoly compare with pure competition in terms of price, output, and efficiency? Explain.
A: (Q) How does monopoly compare with the pure competition in terms of price, output, and efficiency?…
Q: Explain Social cost under monopoly?
A: Under monopoly, the social cost refers to deadweight loss which is created because the monopolist…
Q: The government grants which of the following to protect the property rights of inventors? O…
A: Meaning of Property Rights: The term property rights refer to the situation under which an…
Q: Who would be willing to pay more for the right to use the McDonald’s name—an out-let located in the…
A: In a market, the brand name of a company or organization is used by the franchise firms to expand…
Q: give an example of a government-created monopoly. Is creating this monopoly necessarily bad public…
A: monopoly as, "a circumstance where a solitary organization or gathering possesses all or practically…
Q: a) True or False and Explain: A profit maximizing monopolist has no limit to how high they set the…
A: (a). False, the given statement is false because the monopolist’s profit-maximizing level is MR = MC…
Q: When we compare monopoly to perfect competition in the long run,we expect the monopoly model to…
A: In long run, perfectly competitive firms produce normal profit and price is equal to long run AC.
Define economic efficiency in terms of production costs and products prices. Why are purely competitive industries and economically efficient and
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- The following figure shows the demand curve for Good X in a perfectly competitive market. Later, the government grants one of the firms the exclusive right to manufacture and sell Good X. MR represents the marginal revenue curve of the firm when it operates as a monopoly. The marginal cost of producing Good X is constant at $5. Price/Cost (S) 4 Demand 3 MR 2 1 10 11 12 13 14 15 16 17 18 Quantity (1,000 units) a) What is the quantity supplied when the market is perfectly competitive? What happens to the quantity supplied once the market changes to a monopoly? b) What is the market price when the market is perfectly competitive? What is the market price when the market changes to a monopoly? c) Compare the consumer surplus when the market is perfectly competitive and when the market is a monopoly. Is there any producer surplus or deadweight loss in either case? If yes, then how much?Explain Social cost under monopoly?Suppose a monopoly faces the market demand in the nearby figure. It has constant marginal cost equal to $6. Find the perfectly competitive quantity and price assuming the market is made up of producers each with marginal cost $6. Give a numeric answer for each and show them on the graph. What is the efficient quantity? Give a numeric answer and show it on the graph. Which market structure, monopoly or perfect competition, comes closer to achieving the efficient quantity? Now suppose there is a negative externality associated with producing the good of $5 per unit. Now which market structure, monopoly or perfect competition, comes closer to achieving the efficient quantity? Explain briefly.
- 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.Identify the following statement's accuracy and briefly state why. All participant in perfect competition is price taker, while in monopoly, only the monopoly power is the price maker while every other participant is a price taker the similarity between perfect competition and monopoly is the absence of government intervention. Perfect competition is economically efficient as it produces an equilibrium point in which the price and quantity of goods is equal, thus maximising the total surplus. In monopoly, the market is inefficient as monopoly power maximises their revenue by setting their own price. This would create a scenario where consumer surplus will decrease and producer surplus will increases, as well as the presence of deadweight loss, which were the potential gain that is not realised by consumer or producer.What are the main differences between a perfectly competitive market and a monopoly?
- A market structure that is “monopoly” is NOT ... Group of answer choices a. production efficient b. allocation efficient c. neither allocation nor production efficientDraw the graph for a monopoly earning a positive economic profit. Suppose the government institutes a per unit tax on the good produced by the monopoly (consider the impact it will have on the cost curves). On the graph, show how this will affect the monopoly’s profit maximizing level of output and the price charged by the monopoly. Draw and Label Price Axis, Quantity Axis, Demand Curve, Marginal Revenue Curve, Marginal Cost Curve, Average Total Cost Curve, New Marginal Cost Curve, New ATC Curve, Qm, MR=MC, MR=MC1 Qm1, Pm, Pm1, ATC point, ATC1 point, Deadweight Loss, Total Revenue, Total Cost, ProfitEconomists use the model of supply and demand to analyze on the market price. Operfect, monopoly monopoly, competitive O competitive, competitive monopoly, monopoly competitive, monopoly markets. In a market, there are many buyers and sellers, each of whom has little or no influence
- Why can it be difficult to decide what a “market” is for purposes of measuring competition?Discuss the relationship between monopoly and extranalities using microeconomics knowledge ?Google dominates online search options and advertising. Some contend Google is a monopoly. First, consider competition and answer these questions: Is Google protected by a barrier to entry, and If so, which barrier(s)? Is there a viable substitute for Google? Second, consider whether Google is a monopoly or not. How does Google’s control of the market influence market price and market quantity? If Google is a monopoly, how would breaking up affect the market price and market quantity? How do we test these hypotheses?
