Restrictive practices are characterized as.... Practices that promote competition by restricting monopolies Practices the reduce competition without outright agreements to raise price or reduce quantity Practices that restrict the number of consumers who may purchase a product Practices that prevent firms from entering certain markets.

Restrictive practices are characterized as.... Practices that promote competition by restricting monopolies Practices the reduce competition without outright agreements to raise price or reduce quantity Practices that restrict the number of consumers who may purchase a product Practices that prevent firms from entering certain markets.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A free market is one where decisions regarding what and how much to produce are made by the market itself. This market is made up of buyers and sellers negotiating prices for goods and services. It is generally accepted that there are four degrees of competition within a free-market system. These include perfect competition, monopolistic competition, oligopoly, and monopoly. One benefit of the free market is that it allows open competition among companies. Businesses must provide customers with high-quality products at fair prices with good service. If they don't, they lose customers to businesses that do. Select the degree of competition that best describes each listed industry or business based on the description.
True/ False There is a price discrimination in the monopoly market.
Name-Brand Prescription Drugs Market—“Happy Pill”—that greatly improves life but is not essential to life. Using supply and demand analysis, explain what happens to the market price and quantity of a name-brand prescription drug Happy Pill if its patent expires. Using supply and demand analysis explain why Happy Pill might be advertised. Using supply and demand analysis, explain what would happen to the price and quantity of Happy Pills if there was a severe recession, and people lost their jobs, which included a health-care benefit that payed for prescription drugs.
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 monopolist is able to maintain into the long run primarily because a. barriers to entry exist b. of collusive behavior c. of mutual interdependence d. of price taking behavior e. of product differentiation
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.
A monopolistic competitor engages in advertising to A) provide information about its good or product B) differentiate its product from those of its rivals C) increase the demand for its good or service D) all of the above
What is the difference between the price elasticity of demand for a monopolist and the price elasticity of demand for a monopolistic competitor? Select the correct answer below: Monopolists face a higher elasticity of demand than monopolistic competitors. Monopolists face a lower elasticity of demand than monopolistic competitors. Both markets face perfectly elastic demand. The elasticity of demand for monopolists and monopolistic competitors depends on the industry not on the market type. A
Classify the following as a government-enforced barrier to entry, a barrier to entry that is not government-enforced, or a situation that does not involve a barrier to entry. A patented invention A popular but easily copied restaurant recipe An industry where economies of scale are very small compared to the size of demand in the market A well-established reputation for slashing prices in response to new entry A well-respected brand name that has been carefully built up over many years A city passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the market
Which of the following is least likely to present a barrier to entry into a market? patent laws technological advantages economies of scale products are considered identical
Suppose the demand curve is D(p) = 100 − 2p. What price would the monopolist set if he had 60 apartments? How many would he rent? Whatprice would he set if he had 40 apartments? How many would he rent?