The effects of changes in technology.

Question

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Answer 1

Question

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

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Answer 2

Question

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

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Answer 3

Question

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

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Answer 4

Question

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

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Answer 5

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

Answer 6

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.

Answer 7

Chapter 14, Problem 1DQ

To determine

The effects of changes in technology.

Answer 8

Expert Solution & Answer

Explanation of Solution

An increase in the number of customers of the electronic and telephone companies would increase the use of their services and this would reduce the average cost of these companies. A large part of the costs associated with these companies is fixed. Thus, adding a second or third distribution service would be wasteful, which also covers the same route as the first. Therefore, it is better to serve these services by a single agency. A monopoly can serve the public interest, provided that the firm does not exploit its customers using market power. A technological change can alter the cost structure and efficiency of an industry. A technological change may be able to provide the same service at a lower cost, which would eliminate a natural monopoly. The impact of small satellite TV dishes on cable TV networks is an example of the effect of technological changes.