Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 13, Problem 1SPA
To determine
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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
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.
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After the ban is imposed, Joe’s firm switches to the more expensive biodegradable disposable cups. This increases the cost associated with each cup of coffee it produces.
Which cost curve(s) will be impacted by the use of the more expensive biodegradable disposable cups? Why? Which cost curve(s) will not shift, and why not? Please use the table below to answer this question. For the second column (“Impacted? If so, how?”), please use one of the following three choices: No shift; Shifts up (i.e., increases: at nearly any given quantity, the cost goes up); or Shifts down (i.e., decreases: at nearly any given quantity, the cost goes down). $
Cost Curve
Impacted? If so, how?
Explanation of the Shift: Why or Why Not
AFC
No shift.
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Chapter 13 Solutions
Macroeconomics
Ch. 13.1 - Prob. 1RQCh. 13.1 - Prob. 2RQCh. 13.1 - Prob. 3RQCh. 13.2 - Prob. 1RQCh. 13.2 - Prob. 2RQCh. 13.2 - Prob. 3RQCh. 13.2 - Prob. 4RQCh. 13.3 - Prob. 1RQCh. 13.3 - Prob. 2RQCh. 13.3 - Prob. 3RQ
Ch. 13.3 - Prob. 4RQCh. 13.4 - Prob. 1RQCh. 13.4 - Prob. 2RQCh. 13.4 - Prob. 3RQCh. 13.4 - Prob. 4RQCh. 13.5 - Prob. 1RQCh. 13.5 - Prob. 2RQCh. 13.5 - Prob. 3RQCh. 13.5 - Prob. 4RQCh. 13 - Prob. 1SPACh. 13 - Prob. 2SPACh. 13 - Prob. 3SPACh. 13 - Prob. 4SPACh. 13 - Prob. 5SPACh. 13 - Prob. 6SPACh. 13 - Prob. 7SPACh. 13 - Prob. 8SPACh. 13 - Prob. 9SPACh. 13 - Prob. 10APACh. 13 - Prob. 11APACh. 13 - Prob. 12APACh. 13 - Prob. 13APACh. 13 - Prob. 14APACh. 13 - Prob. 15APACh. 13 - Prob. 16APACh. 13 - Prob. 17APACh. 13 - Prob. 18APACh. 13 - Prob. 19APACh. 13 - Prob. 20APACh. 13 - Prob. 21APACh. 13 - Prob. 22APACh. 13 - Prob. 23APACh. 13 - Prob. 24APACh. 13 - Prob. 25APA
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