Monopoly : This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

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Answer 1

Question

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

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Tasks Exercise 1 Assess the following functions: 1. f(x)= x2+6x+2 2.f '(x)=10x-2x2+5 a. Find the stationary points. (5 marks) b. Determine whether the stationary point is a maximum or minimum. (5 marks) c. Draw the corresponding curves (5 marks)

Problem 2: The sales data over the last 10 years for the Acme Hardware Store are as follows: 2003 $230,000 2008 $526,000 2004 276,000 2009 605,000 2005 328,000 2010 690,000 2006 388,000 2011 779,000 2007 453,000 2012 873,000 1. Calculate the compound growth rate for the period of 2003 to 2012. 2. Based on your answer to part a, forecast sales for both 2013 and 2014. 3. Now calculate the compound growth rate for the period of 2007 to 2012. 1. Based on your answer to part e, forecast sales for both 2013 and 2014. 5. What is the major reason for the differences in your answers to parts b and d? If you were to make your own projections, what would you forecast? (Drawing a graph is very helpful.)

Answer 2

Question

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

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Answer 3

Question

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

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Answer 4

Question

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

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Answer 5

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

Answer 6

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

Answer 7

Chapter 8, Problem 1P

To determine

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Answer 8

Expert Solution & Answer

Explanation of Solution

a. Merck Company, the producer of the patented cholesterol-lowering drug Zetia.

In the given case, Merck Company produces the drug which is patented by the government. This implies that no other producer in the market can produce drug Zetia.

Hence, Merck Company has the monopoly over the production of the drug, protected by the government.

Conclusion:

Thus, Merck Company has a monopoly in drug Zetia.

b. WaterWorks Company, a provider of piped water.

In the given case, WaterWorks Company has the market power in the supply of piped water.

There are huge fixed costs involved in the provision of piped water to the households. This implies that the average total cost is low.

Hence, due to the huge fixed costs, small firms do not prefer to enter into the market, which results in a natural monopoly to WaterWorks Company over the supply of piped water.

Conclusion:

Thus, WaterWorks Company has a natural monopoly.

c. Chiquita Company, a supplier of bananas and owner of most banana plantations.

Chiquita Company has the market power to supply bananas to the consumers as it owns most of the banana plantations.

Due to this ownership in plantations, the company restricts the other suppliers to enter into the market and holds a position of monopoly.

Conclusion:

Thus, Chiquita Company has a monopoly in banana supply.

d. Walt Disney Company, the creators of Mickey Mouse character.

In the given case, Walt Disney Company has the copyright over the character created by it. This implies that no other company in the industry can use the same character in their production.

Hence, Walt Disney Company has the monopoly over the Mickey Mouse character, protected by the government.

Conclusion:

Thus, Walt Disney Company has monopoly over the Mickey Mouse character.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 8 - Prob. 1P Ch. 8 - Prob. 2P Ch. 8 - Prob. 3P Ch. 8 - Prob. 4P Ch. 8 - Prob. 5P Ch. 8 - Prob. 6P Ch. 8 - Prob. 7P Ch. 8 - Prob. 8P Ch. 8 - Prob. 9P Ch. 8 - Prob. 10P

Monopoly : This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Concept Introduction: Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.

Explanation of Solution

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Chapter 8 Solutions

Concept Introduction:

Monopoly: This refers to the condition in a market where there is a single person or company who sells a particular good or service and there is no competitor. In a monopoly, the supplier is free to fix any price since the consumers have no alternative available.