EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 10, Problem 2SP
To determine
Identify
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If you lived in a small rural community in Montana, which of the following is most likely to be a monopoly ?
A.
an appliance store
B.
a grocery store
C.
a dentists office
D.
An electricity provider
An example of a monopoly could be:
a. the only veterinary doctor on an island
b. a big hospital in a big city
c. a big city restaurant
d. the hotels in san juan
write one to two pages :
What are the three reasons that a market might have a Monopoly?
Chapter 10 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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Similar questions
- Which of the following is most likely to be a monopoly? options: local utility company local gym local grocery store local coffee shoparrow_forwardPlease submit the answer and then watch the video feedback.Tony's Tree Service is the only firm in a town that removes large trees. Tony invested in costly bucket trucks and wood chippers when he began his business. Which of the following best describes the barrier to entry that allows Tony to keep his monopoly? a.monopoly resources b.government-created monopoly c.natural monopolyarrow_forwardHow does monopoly affect society’s well-being?arrow_forward
- 7 Which of the following is most likely a monopoly? A Local fast-food restaurant BO Local bathroom fixtures shop Local television broadcaster DO Local electricity distributorarrow_forwardWhich of the following is considered a barrier to entry in a monopoly? A. Control of a key resource B. Perfect information C. Many sellers in the market D. Price competitionarrow_forwardCalculate the price in Country U using the following information in a Monopoly market when there is a possibility for resale: The elasticity of demand in Country J is -5.5 and Country U is -2.2 Marginal cost is $12. a. $22 b. $22.5 c. -$22.5 d. $12arrow_forward
- All of the following can break a monopoly EXCEPT a. increased barriers to entry b. technology and innovation c. international competition d. changing consumer tastesarrow_forwardThe Puerto Rico Electric Power Authority (PREPA) is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1. The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a point on the ATC curve at the quantity produced. Label it 2. Draw shapes that show 1) the monopoly's economic profit. Label it EP. 2) the consumer surplus. Label it CS. 3) the deadweight loss. Label it DWL. 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- Price and cost (cents per kWh) MC D 40 44 8 12 16 20 24 28 32 36 Quantity (millions of kWh per month) >>> Draw only the objects specified in the question. + Garrow_forwardIs a monopoly always bad for society? Question 6 options: None of the other answers is correct Yes. Monopoly is always bad Monopoly is not bad if its owner gives back to society in charity No. For example, patents on medications create monopolies, and increase the price and reduce the quantity sold, but without them, no one would take the high costs of developing new drugs and the quantity will be... zero!arrow_forward
- What will happen if a monopoly raises its price? a Quantity demanded will increase. b Quantity demanded will stay the same. c Quantity demanded will fall to zero. d Quantity demanded will fall, but not necessarily to zero.arrow_forwardWhen does a company officially become a monopoly? a. when it controls more than 25 percent of the output of a certain product b. when the government decides the company is a threat to the national economy c. when a company controls the output for a marketable product without meaningful competition d. when a company controls more than 50 percent of the output of a productarrow_forwardWhich of the following in your view , is the BEST example of a NATURAL monopoly . Note some of these may not even be natural monopolies. a.The production of electricity b.delivering packages (UPS and similar companies) c.The monopoly Microsoft holds in the operating system market d.The delivery of electricity to homes.arrow_forward
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