Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 13, Problem 4SQ
To determine
The renting of telephones and providing of service.
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Canada Post has a monopoly on residential mail delivery.
Pfizer Inc. makes Lipitor, a prescription drug that lowers cholesterol.
Rogers Communications is the sole provider of cable television service in some parts of Ontario.
Are any of these firms protected by a barrier to entry?
Do any of these firms produce a good or service that has a substitute?
Might any of them be able to profit from price discrimination?
.....
Rogers Communications has a
of other cable companies into the market because Rogers Communications
barrier to entry regarding the entry
O A. natural; was the first firm to offer cable television in parts of San
Diego
O B. legal; reaps economies of scope allowing it.ko provide cable
television service as well as Internet service
O C. legal; has a government licence to provide cable television in parts
of San Diego
OD. natural; reaps economies of scale allowing it to provide cable
television service at a lower average cost than two or more firms
...
ssume there is no price discrimination:
Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.
Is it possible to have a situation where a profit maximizing monopoly chooses to produce the same quantity as the one that would be produced under perfect competition:
a) Yes, the monopoly always chooses to produce the same quantity as the one that wouldbe produced under perfect competitionb) Yes, under first-degree price discriminationc) Yes, under second-degree price discriminationd) Yes, under third-degree price discriminatione) None of the above
Chapter 13 Solutions
Micro Economics For Today
Ch. 13.2 - Prob. 1YTECh. 13.6 - Prob. 1.1YTECh. 13.6 - Prob. 1.2YTECh. 13 - Prob. 1SQPCh. 13 - Prob. 2SQPCh. 13 - Prob. 3SQPCh. 13 - Prob. 4SQPCh. 13 - Prob. 5SQPCh. 13 - Prob. 6SQPCh. 13 - Prob. 7SQP
Ch. 13 - Prob. 8SQPCh. 13 - Prob. 9SQPCh. 13 - Prob. 10SQPCh. 13 - Prob. 11SQPCh. 13 - Prob. 12SQPCh. 13 - Prob. 1SQCh. 13 - Prob. 2SQCh. 13 - Prob. 3SQCh. 13 - Prob. 4SQCh. 13 - Prob. 5SQCh. 13 - Prob. 6SQCh. 13 - Prob. 7SQCh. 13 - Prob. 8SQCh. 13 - Prob. 9SQCh. 13 - Prob. 10SQCh. 13 - Prob. 11SQCh. 13 - Prob. 12SQCh. 13 - Prob. 13SQCh. 13 - Prob. 14SQCh. 13 - Prob. 15SQCh. 13 - Prob. 16SQCh. 13 - Prob. 17SQCh. 13 - Prob. 18SQCh. 13 - Prob. 19SQCh. 13 - Prob. 20SQ
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Similar questions
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- if a natural monopolist practices perfect price disrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? explain with a diagram.arrow_forward100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 $40 $20 $100 0 $60 2 4 MR Suppose that Vanessa who owns a Zumba fitness center in rural Indiana can identify her customers' demand. How much would she charge in order to achieve 1st degree (=perfect) price discrimination? MC ATC D 6 8 10 Quantity (clients per day)arrow_forwardIn terms of perfect first-degree price discrimination, could you show that the firm's price of the last unit sold would equal the marginal cost of producing that unit and that the firm would produce the perfectly competitive level of output? If you can use a graph, that would help me understand thank you.arrow_forward
- If a natural monopolist practices perfect price discrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? Explain with a diagram.arrow_forwardHersheypark in Pennsylvania mentions the following offer on its Web page: “A military discount is available at Hersheypark during the regular summer operating schedule off of the Regular, Junior and Senior One Day admission. This discount is available to active duty military, reserves, retired military personnel, and members of the National Guard.” This is _____ price discrimination.arrow_forwardLogically Explain: (a) Which degree of price discrimination may cause favor for the consumer rather than producer? Explain it with the help of most appropriate example.arrow_forward
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