13. What is the economic argument that monopolies are most often less efficient than highly (say, perfectly) competitive producers?

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You are the manager of a monopolistically competitive firm. The demand curve of the firm is linear, and the marginal cost is a fixed constant. a. Graphically illustrate the profit-maximizing output and price set by the monopolistic firm. b. If the government set a tax of $t per unit sold, graphically illustrate how the output and price of the monopolist’s profit maximization will change? *Please show all work*

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Ilia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side of the street and a Shell station on the other side of the street. Although run by different companies, the two stations sell gasoline at the same price. a. The most likely reason that the price is the same is that _gas stations always make a profit, so they can charge any price they want. _drivers need gas and are willing to pay whatever price a gas station charges. _government regulation requires both gas stations to charge the same price. _consumers view gasoline from different gas stations as perfect substitutes. b. If one station increases its price, _it will be fined by the government. _it will sell more gasoline. _it will make a higher profit. _it will lose customers to the cheaper station across the street.

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…

Explain why it is not possible for a monopoly firm to maximise its profits by charging a price in the price region where demand is inelastic, even though there are no direct substitutes for its product. Also explain how a monopoly will be able to charge a higher price than a firm producing the good under perfect, oligopolistic, or monopolistic competition

Define economic efficiency in terms of production costs and product prices. Okay by are purely competitive industries economically and efficient and monopoly industries are not efficient?

While firms in perfect competition maximize profit by producing at a quantity where the marginal cost of producing another unit of a good is equal the the marginal revenue from producing another unit, monopoly firms will maximize profit by producing at a quantity where marginal cost of producing another unit is equal to the marginal revenue (the same as perfect competition) the marginal profit the average total cost O the price of the good 10:04 P Bi 63°F Cloudy 5/20/202 e here to search O

Use the drop-down menus to select answers that best complete the following sentences about profit, output, and price regulations. Choose A, B or C for each of the bolded sections. 1. Profit Regulation (A.- Requires firms to set price equal to ATC, B. - mandates the quantity that the natural monopoly produces C. - requires firms to set price equal to MC). Under this regulation, the firm (might lower quality of the product as a way of increasing profits, loses its incentive to reduce costs, achieves allocative efficiency; however, the firm may be unable to make a profit). 2. Price Regulation (A.- Requires firms to set price equal to ATC, B. - mandates the quantity that the natural monopoly produces C. - requires firms to set price equal to MC). Under this regulation, the firm (A. - might lower quality of the product as a way of increasing profits B. - loses its incentive to reduce costs C. - achieves allocative efficiency; however, the firm may be unable to make a profit). 3. Output…