Which of the following describes the type of entry barrier faced for electricity transmission?A. There is a created entry barrier for electricity transmission because it is cheaper to have only one set of power lines serving a given region.B. There is a created entry barrier for electricity transmission because entry into the market has been limited by the economies of scale.°C. There is a natural entry barrier for electricity transmission because it is cheaper to have only one set of power lines serving a given region.O D. There is a natural entry barrier for electricity transmission because entry into the market has been limited by government restriction.Which of the following describes the type of entry barrier faced for municipal sewage services?A. There is a natural entry barrier for municipal sewage services because it is cheaper to have only one sewer system serving a given region.B. There is a natural entry barrier for municipal sewage services because entry into the market has been limited by government restrictionC. There is a created entry barrier for municipal sewage services because entry into the market has been limited by the economies of scale.D. There is a created entry barrier for municipal sewage services because it is cheaper to have only one sewer system serving a given region.Which of the following describes the type of entry barrier faced for copyrighted songs and music?O A. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through government action.B. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through price cutting.C. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through government action.OD. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through limited access to key natural resources.

Entry of new firms into the market can be restricted by entry barriers which can be legal,…

Which of the following describes the type of entry barrier faced for copyrighted songs and music? OA. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through government action. B. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through price cutting. C. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through government action. D. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through limited access to key natural resources.

Which of the following describes the type of entry barrier faced for copyrighted songs and music? OA. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through government action. B. There is a natural entry barrier for copyrighted songs and music because entry into the market has been limited through price cutting. C. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through government action. D. There is a created entry barrier for copyrighted songs and music because entry into the market has been limited through limited access to key natural resources.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. In the market for steel pots for boiling water, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for steel pots is 200 per month when there is no tax. The government imposes a tax of Rs.5 per steel vessel. As a result, the government is able to raise Rs.800 per month in tax revenue. a. Please, specify new equilibrium quantity of steel pots (after tax) b. Draw a graph to show the new and old equilibrium quantity and the tax revenue (before and after-tax) C. Suppose you are told that the equilibrium price was Rs.100 when the tax was not imposed. With the tax now the buyer pays Rs.103 and the seller receives Rs.98. What is the loss in consumer and producer surplus? Show it on the graph. d. What is the loss in welfare? Explain. e You advise the government that instead of a tax on steel pots they should impose the tax on the steel industry to minimize the welfare loss.…
2. A monopolist faces demand p = 10 - Q and has costs TC = 10 + 2q. a. Provide expressions for marginal revenue and marginal cost. b. Maximize the firm's profit to determine the equilibrium price, quantity, and profit. c. The monopolist faces the prospect of entry by competitor with the same cost function. If the firm enters, they will compete by choosing quantities. Does the monopolist need to worry about this entry threat? Explain. d. The government is considering a subsidy of 4 for all firms in this industry. Should the monopolist support or oppose this policy? Explain.
Question 4: a. The Best Computer Company just developed a new computer processor, on which it immediately acquires a patent. (i) Assuming that the production of the processor involves rising marginal cost, draw a diagram to illustrate Best Computer's profit-maximizing price and quantity. Also show Best Computer's profits. (ii) Now suppose that the government imposes a tax on each unit of the computer processor produced. On a new diagram, illustrate Best Computer's new price and quantity. How does each compare to your answer in part (i)? (iii) Draw a diagram that shows the consumer surplus, producer surplus and total surplus in the market for this new processor. iv) What happens to these three measures of surplus if the firm can perfectly price discriminate? What is the change in deadweight loss? What transfers occur?
3. Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
Figure 3 iPrice 110 100 90 80 30 Demand 50 45 40 30 20 10 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 170 Luentity Refer to Figure 3. If 50 units of the good are bought and sold, then the marginal cost to sellers is equal to the marginal value to buyers. the marginal value to buyers is greater than the marginal cost to sellers. the marginal cost to buyers is greater than marginal value to sellers. d.producer surplus is less than consumer surplus.
1. When a monopoly advertises, the goal is to _____ because _____. Group of answer choices increase its demand as a share of market demand; the monopoly faces a significant portion of market demand increase market demand; the monopoly faces the entire market demand increase market demand; the monopoly produces a product that is identical to the output of all other sellers in the market increase its demand as a share of market demand; the monopoly faces a small portion of market demand 2. If given a choice, a person would prefer to experience the situation of which of the following families? Group of answer choices a family with income equal to the world poverty line a family with income equal to the United States poverty line a family with income double the world poverty line a family with income equal to the poverty line in the United States in 1970 3. A business using its bargaining power as a major buyer of labor to pay lower prices, including lower wages,…
5. Indicate whether each of the following statements is true or false, and explain your answer.A. If a monoplist is producing a level of output at which demand is inelastic, the firm is not maximizing profits and increasing output will decrease total revenu.B. When a monopolist maximizes profits, the price is greater than the marginal cost of producing the output. This means that consumers are willing to pay more for additional units of the product than these additional units of the produce. Thus, the monopolist should produce and sell addional units of output.C.A monopolistically competitive firm produces a level of output at which price equals $80, marginal revenue equals $40, average total cost equals $100, marginal cost equals $40 , and average fixed cost equals $10. To maximize profit, the firm should produce a smaller output and sell it at a higher price.D. In a monopolistically competitive market, a firm has market power because it produces a differentiated product. This means…
Suppose that the government instituted a per-unit tax on the output of a monopoly firm. A. graph this situation? B. On the same graph show what would happen to the market equilibrium after implementation of such a tax? C. On the same graph how would you show which economic actor pays most of the tax? You are to not only draw the graph but also explain the answer
Question 7 120 MC 90 50 Demand MR 30 The graph above depicts the market for pastries. Based on the graph, how much is consumer surplus under monopoly? 1200 900 750 450
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