What are the principles that guide the government's antitrust policy? (Select all that apply) O A. The protection of competition O B. The control of prices O C. The profitability of monopolies O D. Lower prices for consumers

What are the principles that guide the government's antitrust policy? (Select all that apply) O A. The protection of competition O B. The control of prices O C. The profitability of monopolies O D. Lower prices for consumers

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

What are the principles that guide the government's antitrust policy?
(Select all that apply)
O A. The protection of competition
O B. The control of prices
O C. The profitability of monopolies
O D. Lower prices for consumers

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MC Price AC AR 2345 MR Quantity The diagram above represents a monopoly firm. At which output level will the monopolist maximize profits? O A. Output level 3 B. Output level 4 O C. Output level 1 O D. Output level 5
K To restrict a firm's monopoly power, why can't antitrust authorities just set a floor or a ceiling in the market? OA. It is difficult to set a fair price, so regulators do not get involved in the pricing decisions of any monopolists. B. It is difficult to set a fair price, and even if regulators did, the firm would then have no incentive to innovate. C. The government does not have the power to dictate what a firm can charge; it can only stop mergers. D. Floors or ceilings lead to inefficiency and deadweight loss, which can be avoided if the monopoly sets its own price.
Only typed answer
19 Which of the following describes how a natural monopoly is graphically illustrated? A When producing small quantities, the demand is higher than long-run average cost. BO The long-run average cost curve is U-shaped. CO When producing large quantities, the long-run average cost is greater than demand. The demand curve intersects the long-run average cost curve at a point where the long-run average cost curve is downward sloping. D
7. Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. 100 90 80 70 60 ATC A MC 10 MR D 10 12 14 16 18 20 QUANTITY (Thousands of subscriptions) Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits without constraints. PRICE (Dollars per subscription
47 and 48
2. You run a monopoly firm that serves two types of consumer. Individual type-A consumers have a value of 8 for their first unit of your product, a value of 4 for their second unit, and a value of zero for all additional units. Individual type-B consumers have a value of 5 for a single unit of the product and zero for any additional units. There are 3 type-A consumers and 5 type-B consumers. Your marginal cost is zero. a) If your firm can set only a single per-unit price for any units sold, what price should you choose? What is your total profit? b) If your firm can practice first-degree price discrimination, how many units are sold to each consumer and how much does each consumer pay? What is your total profit?
19. A monopoly is a market in which there is only one seller. This situation hurts consumers (buyers). But how, precisely? Explain the things that a monopoly does that hurt consumers.
Answer this for me mate. Much appreciated.
part 10 11 needed.......
please fast 31.
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."