16) A significant difference between monopoly and perfect competition is that A. free entry and exit is possible in a monopolized industry, but impossible in a competitive industry B. competitive firms control market supply, but monopolies do not C. the monopolist

16) A significant difference between monopoly and perfect competition is that A. free entry and exit is possible in a monopolized industry, but impossible in a competitive industry B. competitive firms control market supply, but monopolies do not C. the monopolist

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please solve part C & D
I need a full explanation for these questions 1. A monopoly may arise or be created by all of the following except a. Diseconomies of scale b. Ownership of an essential resource c. Government restrictions on entry d. Patents e. Economies of scale 2. A monopolist a. Has a perfectly inelastic demand curve. b. Is a price taker. c. Can always increase price to increase economic profit. d. Is a price maker. e. Has no control over the market price of the product it sells. 3. A price-discriminating monopolist a. Produces quality products only. b. Does not sell products to minority groups. c. Must have a very large operation. d. Sells the same product in different markets at different prices e. Has no market power in the industry 4. Firms operating in a perfectly competitive market are price takers because a. They have a lot of market power. b. They are unable to set a price that differs from the market price without losing profit. c. They choose to set a price that differs from the market…
97) Refer to the attached Table 6. As long as Matthew and Anna operate as a profit-maximizing monopoly, what will their weekly revenue equal? A. $270 B. $200 C. $320 D. $360 96) Refer to the attached Table 60. If the market for water was perfectly competitive instead of monopolistic, how many litres of water would be produced and sold? A. 70 B. 90 C. 120 D. 80
C
1-In the table below are the demand and cost data for ECON Drugs, a pure monopolist. Complete the table and columns for total revenue, marginal revenue, and marginal cost. What are the answers to these three questions: (a) At what production output will Econ Drugs produce? (b) What price will ECON Drugs charge? (c) What total profit will the Econ Drugs receive at the profit-maximizing level of output? Quantity Price Total revenue Marginal revenue Total cost Marginal cost 0 $34 $_____ $ 20 1 32 _____ $_____ 36 $_____ 2 30 _____ _____ 46 _____ 3 28 _____ _____ 50 _____ 4 26 _____ _____ 54 _____ 5 24 _____ _____ 56 _____ 6 22 _____ _____ 64 _____ 7 20 _____ _____ 80 _____ 8 18 _____ _____ 100 _____ 9 16 _____ _____ 128 _____ 10 14 _____ _____ 160 ___
Which of the following are characteristics of a monopoly A. Set their own price B. Many buyers and sellers C. Declining long-run average total cost D. Free entry and exit
9. Draw a linear demand curve, linear MC and MR for a monopolist. (a) Show graphically the optimal price and quantity produced. (b) How will your answer in (a) change if the demand becomes more inelastic? Will the gap between MC and p increase or decrease? (c) Show the CS, PS, and, DW L.
10 Monopoly profits do NOT serve any "socially useful" purpose because: Select one: E of a. Each of these is a reason why monopoly profits are not socially useful. b. the monopolist's profits are not "competed away". C. the monopolist's profits do not incentivize new investment and a reallocation of resources into the market. d. entry barriers prevent new firms from entering the market to compete with the monopolist.
Natural monopolies occur where A. opportunities for economies of scale is significant, and the firm can lower its long run average costs by expanding production. B. the firm’s minimum efficient scale point relative to the market size is large. A single firm can meet full demand in the market at lower costs. C. the firm’s minimum efficient scale point relative to the market size is large and occurs beyond the demand line. A single firm can meet full demand in the market at a profitable price. D. the demand for the product is low and the firm’s AC curve reaches its minimum far beyond the demand line. At the MES point, there will be excess supply
1. For a price searching firm it's marginal revenue curve (a). Is below it's marginal cost curve (b). Must be vertical (c). Must be horizontal (d). Is below it's a demand curve 2. The most common source of illegal Monopoly today is (a). Predatory pricing (b). Intellectual property rights (c). Royal edict (d). Natural monopoly 3. The market demand is given by p= 420-0.05Q, vrp is the price of the good and Q is the quantity demanded at that price. The monopolist marginal revenue function in this market is (a). MR= 210-0.05Q (b). MR= 420-0.05Q (c). MR= 420- 0.025Q (d). MR= 420-0.1Q 4. In the monopolized ( profit maximizing) market equilibrium p> MC( the price exceeds the marginal cost) this implies that (a). The consumer surplus is equal to the producer surplus (b). The total value of the good is maximized (c). The equilibrium is Marshall inefficient (d). The market price is equal to the market quantity 5. The market demand is given Q= 440-40P, where P is the price of the good…
8. A fundamental source of monopoly market power arises from a. perfectly elastic demand. b. perfectly inelastic demand. c. barriers to entry. d. availability of "free" natural resources, such as water or air.
2. The demand curve facing a monopolist is ________. Select one: a. downward-sloping b. upward-sloping c. horizontal d. vertical