The Private Express Statutes, passed in 1792 and (in amended form) still in effect today, contain federal civil and criminal laws relating to the delivery of mail. The statutes grant monopoly powers to the U.S. Postal Service. Given the technology available today, the average effect of this monopoly on the price and quality of mail service in the populated parts of the United States is that the because of the monopoly privilege of the USPS. O price is higher and the quality of service is lower O price is lower and the quality of service is higher O price and quality of service are lower O price and quality of service are higher

The Private Express Statutes, passed in 1792 and (in amended form) still in effect today, contain federal civil and criminal laws relating to the delivery of mail. The statutes grant monopoly powers to the U.S. Postal Service. Given the technology available today, the average effect of this monopoly on the price and quality of mail service in the populated parts of the United States is that the because of the monopoly privilege of the USPS. O price is higher and the quality of service is lower O price is lower and the quality of service is higher O price and quality of service are lower O price and quality of service are higher

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter11: Monopoly And Antitrust Policy

Section: Chapter Questions

Problem 7SCQ: From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural...

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If the transit system were allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge?
If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?
Consider the only electric company in a small town, which you can assume operates as a natural monopoly. The following graph shows the demand curve for electricity services per month, as well as the provider's marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. PRICE (Dollars per subscription 100 90 80 10 0 0 2 MR 8 11 4 10 12 14 QUANTITY (Thousands of subscriptions) 16 ATC MC 18 20 (?)
When the old AT&T had a virtual monopoly on long distance service, it created a rate structure that had high prices M-F 8 am to 5 pm, medium prices M-F 5:01 pm – 11 pm, and low prices M-F 11:01 pm -7:59 am and all-day weekends and holidays. How might the differences in elasticities for business phone users and household phone users explain this rate structure?
Why does a monopoly arise? O because of diseconomies of scale because entry to an industry is blocked because of elastic demand because firms want to maximize profits
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled AC). (Hint: Click a point on the graph to see its exact coordinates.) PRICE (Dollars per month) 160 140 120 100 80 60 40 20 0 0 1 MR 2 3 4 567 QUANTITY (Thousands of households per month) AC MC D 8 (?)
Consider a natural monopoly with large fixed costs and a constant marginal cost of production, such as supplying water to household. Which condition can be used to regulate such a natural monopoly to ensure that the firm continues to operate while maximizing consumer surplus? Question 23Answer a. Demand = Average Cost b. Demand = Marginal Cost c. Marginal Cost = Marginal Revenue d. Price = Marginal Cost e. Price = Marginal Revenue
The graph below shows the Market conditions of Honey's Laundry service, which is the only laundry in Banani Residential Area. Considering the shop as a Monopoly market, answer the following questions: Price, marginal revenue, marginal cost, average total cost 60 ATC 50 MC 45 38 35 32 30 20 110 125 130 140 145 Quantity of output (per week) (a)ln order to maximize profit, how many clothes does the shop clean ?[Answer in numerical value only without any unit] (b)lf the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny's laundry be charging now?[Answer in numerical value only without any unit] (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit]
The figure to the right shows the market demand for electricity and the average total cost and marginal cost of producing electricity for a utility company. Suppose the utility company is a regulated natural monopoly. If government regulators want to achieve economic efficiency, then they will regulate a price of $ per kilowatt hour. (Enter a numeric response using a real number rounded to two decimal places) Now suppose instead that government regulators want to eat the lowest price such that the utility company will not suffer a loss so that it will continue to produce in the long run. If so, then i government regulators will set a price of $ per kilowatt hour. Price and cost (dollars per kilowatt hour) 0.52 048 044- 040- 0.36 0324 0.26 0.24 0.20 0.16 0.12 0.06 004 0.00+ ATC MC 4 8 12 16 20 24 28 32 36 40 44 48 Quantity of kilowatt hours (in billions)
What are the main barriers to entry in the electricity supply market, and how Electricity Company got the status of Monopoly power? also,explain why a monopoly firm (Electricity Company for example) choose not to produce at its full capacity?
Can you help with parts e,f,g? Please and thank you 1. Asssume the following equations describe the conditions for an unregulated monopoly: Qd = q = 25,000 -100P or P = 250-0.01qTC = 480,000 + 70q + 0.005q2 where Qd is the quantity demanded for the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced. Based upon the above equations, answer the following questions:a. What is the firm's profit maximizing quantity of output?b. What price will the firm charge for the commodityc. What does the firm's total economic profit equal?d. What is the amount of deadweight loss that exists given the monopoly is unregulated?Assume the government is now going to regulate this monopoly, and the regulators want to guarentee the monopolist produces the socially optimal quantity of output.e. What is the socially optimal quantity of output?f. What price would regulators establish to guarantee the monopolist produces the socially optimal quantity…
Suppose a monopoly has a cost curve equal to C=6400 + 100Q. The firm's demand curve is p= 500 - 4Q. (Round all numeric responses to two decimal places) What is the monopoly's unregulated profit-maximizing quantity? los tv 13 DII F9 F6 F7 esc F4 F5 %23 $4 & ! 3 4 7 Q W IT Y U tab A S G K caps lock C V shift fn control option command