Which of the following statements are true about this natural monopoly? Check all that apply.The 5G LTE company must own a scarce resource.The 5G LTE company is experiencing economies of scale.It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.The 5G LTE company is experiencing diseconomies of scale.True or False: Without government regulation, natural monopolies never earn zero profit in the long run.True○ False 3. Natural monopoly analysisThe following graph gives the demand (D) curve for 5G LTE services in the fictional town of Streamship Springs. The graph also shows the marginalrevenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local 5G LTE company, a natural monopolist.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.18162006 ±14121PRICE (Dollars per gigabyte of data)°002Monopoly OutcomeATCMCDMR0++012345678910QUANTITY (Gigabytes of data)

A monopolist will produce up to the point where MR=MCIt will set its price at the corresponding…

Answered: Which of the following statements are…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Natural monopolies often occur because of huge economies of scale. is this true or false
true or false Natural monopolies are regulated by government agencies.
true or false Government regulation can easily solve all of the problems associated with natural monopolies.
Scenario 15-3 A monopoly firm maximizes its profit by producing Q = 500 units of output. At that level of output, its marginal revenue is $30, its average revenue is $60, and its average total cost is $34. Refer to Scenario 15-3. At Q=500, the firm's total revenue is a. $13,000. b. $15,000. c. $17,000. d. $30,000. Conteur
In this question, I ask you to consider the market for flights from Seattle to Fresno (California). Alaska Airlines have a monopoly on this route. There are two types of travellers. Leisure travellers derive a value of $200 from flying this route if the itinerary includes a Saturday night stay, and $175 if the itinerary doesn’t include a Saturday night stay. Business travellers derive a value of $100 from flying this route if the itinerary includes a Saturday night stay, and $450 if the itinerary doesn’t include a Saturday night stay. What prices do you suggest that Alaska charge for itineraries that include a Saturday night stay, and those that do not include a Saturday night stay?How might business travellers respond to the pricing strategy you suggested?
Which statement best explains why a city water system has a natural monopoly structure? A water system may set prices at any level it wants to maximize profits and acts in its own interest. A water system requires so little innovation that there is little incentive for businesses to compete for the market. The cost for a competing water system to enter the market is so high that the return on investment is too low. The marginal cost to additional consumers is extremely high compared with average cost for the water system.
A monopolist sells the same good in two geographically separated markets, market 1 and market 2. The firm maximizes its profit by charging different prices: p₁ = 37 in market 1 and p2 in market two. The own-price elasticity of the demand in market 1 is -27 and the own-price elasticity of the demand in market 2 is -13. Find the price the firm charges in market 2, P2, and enter it below. (Hint: Write down the inverse elasticity rule for each market. What "element" common to both expressions?)
Consider any market that has an inverted demand curve given by P = 200-0.6Qd, where P is the market price and Qd is the quantity demanded. Whatever the market structure, it is known that the production of this good takes place through Cmg = CVme= $80.00. Consider that the production of this market can be done by a monopolist company or by two duopolists. If it is a duopoly, the companies will organize themselves as a Stackelberg duopoly and will each have a fixed cost of $1,500.00. If it is a monopoly, this company will have a lot of expenses with licenses with the government, as it is the only one to explore the resource. In this way, your fixed costs would reach $5,000.00. Given this information, evaluate the best balance for this market, from the point of view of consumers.
100 90 80 70 60 50 40 АТС MC 30 20 10 MR D 2 4 6 8 10 12 14 16 18 20 QUANTITY (Thousands of subscriptions) PRICE (Dollars per subscription)
In perfectly competitive markets, there are so many firms that no one firm can influence price. If any of them try to raise their prices above their competitors’ prices, their customers simply switch and buy their competitors’ products. Monopolies are at the other end of the market spectrum. In a pure monopoly, there is only one firm that services the entire market. A pure monopolist can influence price by varying its level of output until it reaches the level of output that results in the highest level of profit for the firm. Please answer the following questions: What advantages do monopolies have for the economy? What disadvantages do monopolies have for the economy?
Dear tutor, please solve these True/False Questions. Thank You! A monopoly always operates in the inelastic portion of its demand curve. The less elastic is the demand for a firm's product, the greater is that firm's market power.
20 10 MRI 8 10 12 14 16 QUANTITY (Thousands of subscriptions) 18 20 Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits, without constraints. Complete the first row of the folowing table. Short Run Quantity Price Pricing Mechanism (Subscriptions) (Dollars per subscription) Profit Long-Run Decision Profit Maximization Marginal-Cost Pricing Average-Cost Pricing Suppose that the government forces the monopolist to set the price equal to marginal cost. Complete the second row of the previous table. Suppose that the government forces the monopolist to set the price equal to average total cost. Complete the third row of the previous table. Under average-cost pricing, the government will raise the price of output whenever a firm's costs increase, and lower the price whenever a firm's costs decrease. Over time, under the average-cost pricing policy, what will the local telephone company most likely do? Work to decrease its costs O…

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