Monopoly of services and the availability of substitutes.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Sam's profit is maximized when he produces shirts. When he does this, the marginal cost of the last shirt he produces is , which is than the price Sam receives for each shirt he sells. The marginal cost of producing an additional shirt (that is, one more shirt than would maximize his profit) is , which is than the price Sam receives for each shirt he sells. Therefore, Sam's profit-maximizing quantity corresponds to the intersection of the curves. Because Sam is a price taker, this last condition can also be written as .

Why must total spending be equal to total income in an economy? Total income plus total spending equals total output. The value-added measurement of GDP shows this is true. Every dollar that someone spends is a dollar of income for someone else. all of the above

Labor Market Data Price $5 $10 $15 $20 $25 3,000,000 6,000,000 9,000,000 12,000,000 15,000,000 Qd 15,000,000 12,000,000 9,000,000 6,000,000 3,000,000 Price $30 $25 $20 $15 $10 $5 + +- x- 3 6 Do + + F 9 12 15 Quantity (In millions) Area of a triangle = 1/2* base *height Market Efficiency & Total Surplus Worth Publishers SCENARIO: The state government is considering raising the minimum wage from $15 per hour to $20 per hour over the next 3 years. As an economic advisor to the governor, you have been asked to provide a recommendation on whether the minimum wage should be increased based on economic theory. Consider the labor market data provided. Prepare a brief report that: 1. Explains whether the labor market is currently efficient at the equilibrium wage of $15 per hour. How would you know? At equilibrium, what (dollar amount) is the Total Surplus this market provides? Show your rationale with numbers. 2. Analyzes the impact on total surplus in the market if the minimum wage is raised…

Answer 2

Question

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Answer 6

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Answer 7

Chapter 13, Problem 1SPA

To determine

Monopoly of services and the availability of substitutes.

Answer 8

Expert Solution & Answer

Explanation of Solution

The monopoly market is a single seller market where the output and price decisions are taken by the seller. As a result, the monopoly market grants the market control to the monopolist. This monopoly arises when there are no close substitutes for a good or services are available in the market for the goods and services. There will be strict barriers that restrict the entry into the market by the new firms thatprevent the competition in the market.

While looking at the postal services, the ordinary and non-urgent mails are not much profitable and since no private firms would encourage and participate in the market for such mails. But the urgent mail services are costly and profitable which is the reason why there are many express mail services operating in the economy. The fax services as well as the email services are the close substitutes available for the service. When the case of the medicine is considered, there are many generic as well as products of various firms that help to control and reduce cholesterol as the LIPITOR does which means there are some substitutes available in the market. There are many satellite television as well as internet television services available as the substitutes for the Cox communications.

While looking at the protection that these services enjoys, it can be easily identified that the postal service is owned and operated by the state, which means there will be legal barriers to entry into the market for the others even though the non-urgent mails become profitable. In the case of the LIPITOR, the competitors can make similar medicines for controlling cholesterol but cannot make the LIPITOR due to the patent rights that the firm might own after developing the medicine. The case with the cable service is different that the locality might be small enough such that its demand is completely met by the Cox itself at the lowest possible cost, which makes Cox the natural monopolist. There are chances that the Cox enjoys some legal barriers that prevent the competition.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Monopoly: The monopoly is a market structure where there are no close substitutes available for the product of a commodity. This grants the complete market control to the seller.

Answer 12

Ch. 13.1 - Prob. 1RQ Ch. 13.1 - Prob. 2RQ Ch. 13.1 - Prob. 3RQ Ch. 13.2 - Prob. 1RQ Ch. 13.2 - Prob. 2RQ Ch. 13.2 - Prob. 3RQ Ch. 13.2 - Prob. 4RQ Ch. 13.3 - Prob. 1RQ Ch. 13.3 - Prob. 2RQ Ch. 13.3 - Prob. 3RQ

Monopoly of services and the availability of substitutes.

Concept explainers

Monopoly of services and the availability of substitutes.

Explanation of Solution

Want to see more full solutions like this?

Chapter 13 Solutions