What is the usual shape of a marginal revenue curve for a monopolist? Why?When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge?Is a monopolist allocatively efficient? Why or why not?ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened?For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context?If public utilities are a natural monopoly, what would be the danger in deregulating them?Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers?In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?Use the following market shares to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not?GM 19%Ford 17%Toyota 14%Chrysler 11%

DISCLAIMER “Since you have asked multiple question, we will solve the first question for you as per guidelines. If you want any specific question to be solved then please specify the question number or post only that question.” A monopoly is an individual, group, or company that controls the entire market for a particular product or service. The monopoly probably also believes in policies that support monopoly. Because it gives them more power.The monopoly's marginal revenue is the private profit from the sale of additional production units. The marginal revenue curve on a monopoly slope is usually downward. This is because even monopoly cannot force consumers to buy a product, regardless of price. The monopoly can charge any price for his product, but that price is limited by the demand for the company's product. Even a monopoly that is completely protected by high barriers to entry cannot require consumers to purchase the product. Since a monopoly is the only company in the market, its demand curve is the same as the market demand curve, and unlike a perfect competition, it is on a downward trend.

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What is the usual shape of a marginal revenue curve for a monopolist? Why?
When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge?
Is a monopolist allocatively efficient? Why or why not?
ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened?
For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context?
If public utilities are a natural monopoly, what would be the danger in deregulating them?
Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers?
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
Use the following market shares to calculate the four-firm concentration ratio for the U.S. auto market. Does this indicate a concentrated market or not?
GM 19%

Ford 17%

Toyota 14%

Chrysler 11%

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