Any activity designed to transfer income or wealth to a particular individual or firm at society's expense is called       patent protection.        X-inefficiency.        price discrimination.        rent-seeking.

The monopolist must decrease price on all units of a product sold in order to sell additional units. This explains why: a monopoly has a perfectly elastic demand curve. (Omarginal revenue is less than price or average revenue. there are barriers to entry in monopoly. total revenues are greater than total costs at the profit maximizing level of output.

There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).

The creation of monopoly results in gains to:OPTIONSProducers at no expense to consumers.Producers at the expense to consumers.Consumers at the expense to producers.Consumers at no expense to producers.

Exhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in Exhibit 9-7, in the short run, the monopoly will: earn an hourly profit of $80. MC break even (i.e., earn zero economic profit). suffer an hourly loss of $160.

Which of the following conditions must occur for the direct price discrimination to be successful? Group of answer choices The seller must be able to offer a different price for each customer. The seller must be able to distinguish between high and low value customers. The seller must prevent a resale of products between customers. All of the above. None of the above.

A monopolist sells 15 holiday greeting cards for $5.00 apiece. If the monopolist desires to sell a 16th card, then the price must be lowered to $4.90. The marginal revenue earned from selling the additional card is $

Classify the following as a government-enforced barrier to entry, a barrier to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years A city passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the market

A business that price-discriminates will generally charge some customers more than marginal cost, and it will generally charge other customers less than marginal cost.   True or False

Because of producer–producer rivalry, the price will tend to   Multiple Choice   rise up to the maximum price the consumers are willing and able to pay.   be the same as the monopoly price.   be driven to a lower price.   be the same as the competitive price.