What are conditions conducive to a natural monopoly?Select one:a. Extensive economies of scale.b. Rapid diseconomies of scalec. PatentsOd. Small market size

Monopoly refers to the market structure where only single firm exists in the market. The Natural…

Answered: What are conditions conducive to a…

What are conditions conducive to a natural monopoly? Select one: O a. Extensive economies of scale O b. Rapid diseconomies of scale O c. Patents Od. Small market size

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price and costs (dollors per unit) 50 30 20 20 10 0 10 20 4.30 X 40 50 60 Quantity Junits per day) The figure above shows the cost, demand, and marginal revenue curves for a monopoly. The firm O will make an economic profit of $20 O will charge a price of $10 per unit. O will produce 20 units per day. O is a natural monopoly.
A Monopoly: Select one: O a. faces a downward sloping demand curve O b. None of the provided answers is correct O c. is a price taker O d. maximizes profit by setting Price equal to marginal cost
What is a defining characteristic of a natural monopoly? O horizontal total cost curve economies of scale over a very large range of output O strong patents that prevent any competition O marginal costs above the average cost
Many schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…
Figure Monpo12: A Fim in An Imperfectly Competitive Industry Price MC Given: Q* = 120 P* = S4.00 PATC = S3.40 P* %3D ATC AVC PATC PAVC PAVC = S0.50 D MR Q* Quantity Refer to Figure Monpo12. Profits for this monopoly is about O $72 O No answer text provided. O $74 O No answer text provided.
In the United States, antitrust laws O A. regard excess competition as a felony under Section 3 of the Sherman Act. O B. place a maximum limit of 125 firms that are allowed to compete in any market. O C. do not always prosecute firms if they have fixed their prices. D. do not allow one person to be a director of two competing firms if being a member "substantially lessens competition". E. break up a company if it is too large because "size itself is an offense."
E1
A monopoly firm's total cost is: TC(Q) = Q° + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. How much profit will this firm make if it is applying the profit maximizing rule? (Hint: MC = 20 + 15) O a$ 2025 O b.$ 1575 Oc.$ 279 O d. $ 3775 O e.$ 506
For a single-price monopoly shown in the figure below, when its profit is maximized, output will be 95 19 15 45 65 MR MC ATC D 65 units per year and the price will be $15. O I choose to use one of my three skips on this question. O 45 units per year and the price will be $19. 65 units per year and the price will be $19. O 45 units per year and the price will be $15.
The monopoly supply curve is the O same as the competitive market supply curve. O portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. O result of market power and production costs. O none of the above
The graph illustrates the demand for haircuts and the costs of producing haircuts Draw a point at the profit-maximizing output and price if this industry is perfectly competitive Label the competitive equilibrium Ec Draw a point at the profit-maximizing output and price if the haircut producer is a single-price monopoly Label the monopoly equilibrium EM How do we redefine the curves in the graph when a perfectly competitive industry is taken over by a single firm? When a perfectly competitive industry is taken over by a single firm, the competitive industry's curve becomes the monopoly's OA. marginal revenue, demand OB. average total cost, supply. curve, 30 25 20- 15- 10- 0.0 Price and cost (dollars per haircut) MR 10 20 40 Quantity (thousands of haircuts) MC ATC D
When a monopolist spends money to make it harder for competitors to enter the industry, this is referred to as O deadweight loss. innovation protection. O x-inefficiency. rent seeking.