Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices? 2. Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits? 3.4. A computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why.
1.Suppose the local electrical utility, a legal
2. Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?
3.4. A computer systems engineer could paint his house, but it makes more sense for him to hire a painter to do it. Explain why.
4.What is an example of a problem in the world today, not mentioned in the chapter, that has an economic dimension?
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