What are the benefits of platform monopolies? What are the costs?     Benefits include increased efficiency, positive network externalities, and lack of dynamic growth. Costs include decreased competition, a divide between monopolist's good and society's good, and protection of users' privacy. Benefits include decreased efficiency, positive network externalities, and dynamic growth. Costs include decreased competition, similarities between the good for monopolist and for society, and privacy concerns. Benefits include increased efficiency and negative network externalities. Costs include increased competition, a divide between monopolists' goals and society's goals, and privacy concerns. Benefits include increased efficiency, positive network externalities, and dynamic growth. Costs include decreased competition, a divide between what is good for the monopolist and what is good for society, and concern for users' privacy.

Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost of producing tangerines, where Q is output measured in thousand pounds, and P is price per pound. Demand: P 59-3Q Marginal Cost: MC = 3 + Q Total Cost: TC = 4 + 3Q+0.50² The monopolist will charge what price and earn what profit? Price $35 and Profit-$220 thousand. Price $19 and Profit $53 thousand. * Price $8 and Profit=$220 thousand. Price $19 and Profit= $14 thousand.

Exercise 3.8. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q², and demand is P = 55 - 2Q. a) What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b) What would output be if DD acted like a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c) What is the deadweight loss from monopoly power in part (a)? d) Suppose the government, concerned about the high price of doorstops, sets a maximum price at $27. How does this affect price, quantity, consumer surplus, and DD's profit? What is the resulting deadweight loss? e) Now suppose the government sets the maximum price at $23. How does this decision affect price, quantity, consumer surplus, DD's profit, and deadweight loss? f) Finally, consider a maximum price of $12. What will this do to quantity, consumer surplus, profit, and deadweight loss?

The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The graph also shows the marginal-revenue (MR) curve, the marginal-cost (MC) curve, and the average-total-cost (ATC) curve for the local gas company, a natural monopolist.   NOTE: read question carefully and answer accordingly

Answer choices are first blank: negative, positive, zero second blank: an equal number of, fewer, more

Suppose that a monopolist calculates that at its present output level, marginal cost is $4.00 and marginal revenue is $4.00. The firm could increase profits by Multiple Choice increasing price and decreasing output. increasing price and maintaining its current output. decreasing price and leaving output unchanged. decreasing output and leaving price unchanged.

A supply curve that is parallel to the horizontal axis suggests that:        the industry is organized monopolistically.        the relationship between price and quantity supplied is inverse.        a change in demand will change price in the same direction.        a change in demand will change the equilibrium quantity but not price.

A monopolistic firm operates in two separate markets, Market A and Market B. The firm can sell its product at different prices in each market due to different demand conditions. In Market A, the firm faces a demand curve given by Q_A = 100 - P_A, where Q_A is the quantity demanded in Market A and P_A is the price charged in Market A. In Market B, the demand curve is Q_B = 80 - 2P_B, where Q_B is the quantity demanded in Market B and P_B is the price charged in Market B. The firm has a total production capacity of 120 units. What price should the firm charge in each market to maximize its total revenue?

You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is −3, while group 2’s is −5. Your marginal cost of producing the product is $40. a. Determine your optimal markups and prices under third-degree price discrimination. b. Identify the conditions under which third-degree price discrimination enhances profits.

Your textbook covered 4 possible ways to deal with a natural monopoly.  Which approach would be best for consumers? Group of answer choices Regulators would force the monopolist to set its price equal to its marginal cost. Let the natural monopoly charge enough to cover its average costs and earn a normal rate of profit. Regulators would allow the monopolist to continue with no government regulation. Regulators would split the monopolist into two competing firms.