All Matches

Solution Library

Expert Answer

Textbooks

Search Textbook questions, tutors and Books

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Tutors
Study Help
Ask a Question

Search
Sign In
Register

study help
business
microeconomics

Questions and Answers of Microeconomics

Perfect competition is analytically elegant.a. What percentage of an economy’s total production do you think is provided by perfectly competitive firms?b. Based on your answer toa, why does the
The perfectly competitive model assumes that firms know when marginal revenue equals marginal costs.a. If a firm doesn’t have this information, can it produce at the profit-maximizing level of
As the chapter points out, the Internet has made the U.S.economy more competitive by lowering barriers to entry and exit from industries.a. To what extent is the Internet itself competitive?b. Can
If a firm is owned by its workers but otherwise meets all the qualifications for a perfectly competitive firm, will its price and output decisions differ from the price and output decisions of a
The milk industry has a number of interesting aspects.Provide economic explanations for the following:a. Fluid milk is 87 percent water. It can be dried and reconstituted so that it is almost
A California biotechnology firm submitted a tomato that will not rot for weeks to the U.S. Food and Drug Administration.It designed such a fruit by changing the genetic structure of the tomato. What
Hundreds of music stores have been closing in the face of stagnant demand for CDs because of new competition by online music vendors.a. How would price competition from these new sources cause a
In 2018, Sears closed 275 of its stores.a. Demonstrate graphically the relationship between ATC, AVC, and price faced by Sears stores when they decided to close.b. Assuming the market is perfectly
Why is the assumption of no barriers to entry important for the existence of perfect competition?
How can the demand curve for the market be downward-sloping but the demand curve for a competitive firm be perfectly elastic?
What are the two things you must know to determine the profitmaximizing output?
Why do firms maximize total profit rather than profit per unit?
What is wrong with the following diagram? Price Profit What is wrong here? MC ATC Quantity P = MR
In the early 2000s, many airlines were making losses, yet they continued to operate. Why?
If a competitive firm makes zero profit, why does it stay in business?
If berets suddenly became the“in” thing to wear, what would you expect to happen to the price in the short run? In the long run?
In the early 2000s, demand for burkas (the garment the Taliban had required Afghani women to wear)declined when the Taliban were ousted.In the short run, what would you expect to happen to the price
What is the key difference between a monopolist and a perfect competitor?
Does a monopolist take market price as given? Why or why not?
Why is marginal revenue below average revenue for a monopolist?
State what’s wrong with the following graphs: (c) Price Price P (a) MR! Profit What's wrong? MC Q Quantity (b) What's wrong? MC ATC Price Price MR What's wrong? Quantity What's wrong? MR D Quantity
Say you place a lump-sum tax (a tax that is treated as a fixed cost) on a monopolist. How will that affect its output and pricing decisions?
A monopolist is selling fish. But if the fish don’t sell, they rot. What will be the likely elasticity at the point on the demand curve at which the monopolist sets the price?(Difficult)
Demonstrate graphically the profit-maximizing positions for a perfect competitor and a monopolist. How do they differ?
True or false? Monopolists differ from perfect competitors because monopolists make a profit. Why?
A monopolist with a straight-line demand curve finds that it can sell 2 units at $12 each or 12 units at $2 each. Its fixed cost is $20 and its marginal cost is constant at$3 per unit.a. Draw the MC,
Demonstrate the welfare loss created by a monopoly.
Will the welfare loss from a monopolist with a perfectly elastic marginal cost curve be greater or less than the welfare loss from a monopolist with an upward-sloping marginal cost curve?
What three things must a firm be able to do to price-discriminate?
The Government Accounting Office reported that airlines block new carriers at major airports.a. What effect does such blocking have on fares and the number of flights at those airports?b. How much
How is efficiency related to the number of firms in an industry characterized by strong economies of scale?
During the 2001 anthrax scare, the U.S. government threatened to disregard Bayer’s patent of ciprofloxacin, the most effective drug to fight anthrax, and license the production of the drug to
Econocompany is under investigation by the U.S.Department of Justice for violating antitrust laws.The government decides that Econocompany has a natural monopoly and that, if it is to keep the
What is the first-mover advantage and how does it affect platform monopolies?
What are the benefits of platform monopolies? What are the costs?
What are the ways in which a firm can differentiate its product from that of its competitors? What is the overriding objective of product differentiation?
What are the “monopolistic” and the “competitive”elements of monopolistic competition?
Suppose a monopolistic competitor in long-run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:a. What output will the firm choose?b. What will
If a monopolistic competitor is able to restrict output, why doesn’t it earn economic profits?
You’re the manager of a firm that has constant marginal cost of $6. Fixed cost is zero. The market structure is monopolistically competitive. You’re faced with the following demand curve:a.
Manufacturers often pay “slotting fees,” payments to retailers to provide their product prime shelf space.These fees range from $25,000 for one item in one store to $3 million for a chain of
Both a perfect competitor and a monopolistic competitor choose output where MC = MR, and neither makes a profit in the long run. How is it, then, that the monopolistic competitor produces less than a
Austrian economists observe that most lasting monopolies are the result of government and that any attempt to make government strong enough to control monopolies may result in an abuse of government
Do men have a monopoly over the best jobs in the United States? If so, how is that monopoly protected? (Feminist)
When analyzing the conduct of “modern” industry, Thorstein Veblen argued that captains of industry succeeded by eliminating their rivals through predatory exploitation and thus sabotaging
Large pharmaceutical firms use monopoly power granted by patents to sell drugs at prices that far exceed marginal costs. Evidence from countries without effective patent protections suggests that
The original language for patent law comes from Thomas Jefferson. He wrote that patents can be obtained for “any new and useful art, machine, manufacture, or composition of matter, or any new or
Firms in a monopolistically competitive market depend on differentiating their products.a. How do firms differentiate their products?b. Aside from commodities such as gold and grain, how many
Any large grocery store carries at least seven different kinds of corn chips—baked, fried, salsa-flavored, white, yellow, blue, and lime-flavored.a. When is product differentiation real and when is
Explain the effects on college education of the development of a teaching machine that you plug into a student’s brain and that makes the student understand everything.How would your answer differ
Assume your city government has been contracting with a single garbage collection firm that has been granted an exclusive franchise, the sole right, to pick up trash within the entire city limits.
When you buy a cheap computer printer, you can sometimes get it for free after the rebate. Why would a firm sell you something for a zero price? (The answer isn’t that it wants to be nice.)
Oftentimes, gas stations a couple of miles apart will differ in price by as much as 5 to 10 cents per gallon because oil companies use a pricing system called zone pricing. For example, gas is sold
Most magazines offer enormous subscription deals for college students. For example, Time magazine offered a one-year subscription for $29.95, when the cover price was $3.95 per issue. This was an 85
Copyrights provide authors with a monopoly.a. What effect would eliminating copyrights have on the price and output of textbooks?b. Should copyrights be eliminated?
Colleges give financial aid to certain students. Is this price discrimination? If so, should it be against the law?
A best-selling horror book, Duma Key by Stephen King, was sold in hardback for $28 when it was first released.One year later, the publisher issued a softcover edition for$9.99. What accounts for the
Does the product differentiation in monopolistic competition make us better or worse off? Why?
Why should you study rather than doodle?
In Table 14-1, explain why 4 is the profit-maximizing output. TABLE 14-1 Monopolistic Profit Maximization (1) (2) (3) (4) (5) (6) Total Marginal Total Marginal Quantity Price Revenue Revenue Cost
In the graph below, indicate the monopolist’s profit-maximizing level of output and the price it would charge. Price Marginal Demand Quantity The general rule that any firm must follow to maximize
Why does a monopolist produce less output than would perfectly competitive firms in the same industry?
Indicate the profit that the monopolist shown in the graph below earns. Price MC ATC Quantity Demand
Why is area C in Figure 14-5 not considered a loss to society from monopoly? PM Pc Price 0 Marginal cost FIGURE 14-5 The Welfare Loss from Monopoly The welfare loss from a monopoly is repre- sented
Why does a price-discriminating monopolist make a higher profit than a normal monopolist?
Why is the competitive price impossible for an industry that exhibits strong economies of scale?
Why do monopolistically competitive firms advertise while perfect competitors do not?
How does the equilibrium for a monopoly differ from that for a monopolistic competitor?
What distinguishes oligopoly from monopolistic competition?
Is an oligopolist more or less likely to engage in strategic decision making compared to a monopolistic competitor?
What is the difference between the contestable market model and the cartel model of oligopoly?
How are the contestable market model and the cartel model of oligopoly related?
Robert Crandell, former CEO of American Airlines, phoned the former Braniff Airways CEO and said, “Raise your fares 20 percent and I’ll raise mine the next morning.”a. Why would he do this?b.
Kellogg’s, which controls 32 percent of the breakfast cereal market, cut the prices of some of its best-selling brands of cereal to regain market share lost to Post, which controls 20 percent of
At one time Mattel proposed acquiring Fisher-Price for$1.2 billion. At the time, Mattel was a major player in the toy industry with 11 percent of the market. Fisher-Price had 4 percent. The other two
Which industry is more highly concentrated: one with a Herfindahl index of 1,200 or one with a four-firm concentration ratio of 55 percent?
The pizza market is divided as follows:a. How would you describe its market structure?b. What is the approximate Herfindahl index?c. What is the four-firm concentration ratio? Pizza Hut 20.7%
If you were an economist for a firm that wanted to merge, would you argue that the three-digit or five-digit NAICS industry is the relevant market? Why?
Suppose you are an economist for Mattel, manufacturer of the Barbie doll, which was making an unsolicited bid to take over Hasbro, manufacturer of the G.I. Joe doll.a. Would you argue that the
What is the difference between judgment by performance and judgment by structure?
Is a contestable model or cartel model more likely to judge an industry by performance? Explain your answer.
Distinguish the basis of judgment for the Standard Oil and the ALCOA cases.
Demonstrate graphically how regulating the price of a monopolist can both increase quantity and decrease price.(Difficult)a. Why did the regulation have the effect it did?b. How relevant to the real
What are three reasons fewer antitrust cases have been brought before the courts?
How do platform businesses change the nature of antitrust policy?
In the past two chapters you have learned much about market power: how it is used, the efficiency implications, and how society has responded. Yet this power remains, albeit minimally checked from
Alexis de Tocqueville once stated, “The Americans have applied to the sexes the great principle of political economy which governs the manufacturers of our age, by carefully dividing the duties of
In which market structure would women likely be most successful? Why? (Feminist)
Does market structure determine firm behavior or does firm behavior determine market structure?(Post-Keynesian)
A recent study of mergers and acquisitions found that 83 percent of the deals achieved did not result in positive shareholder returns. Some resulted in losses.a. If such mergers are not especially
A firm is convinced that if it lowers its price, no other firm in the industry will change price; however, it believes that if it raises its price, some other firms will match its increase, making
Private colleges of the same caliber generally charge roughly the same tuition. Would you characterize these colleges as a cartel type of oligopoly?
When Mattel proposed acquiring Fisher-Price, the infant/preschool toy market four-firm concentration ratio was 72 percent. With 8 percent of the market, Mattel was the fourth-largest firm in that
How would the U.S. economy likely differ today if Standard Oil had not been broken up?
American Airlines offered a 50-percent-off sale and cut fares. Continental Airlines and Northwest Airlines sued American Airlines over this action.a. What was the likely basis of the suit?b. How does
You’re working at the Department of Justice. Ms. Ecofame has just developed a new index, the Ecofame index, which she argues is preferable to the Herfindahl index.The Ecofame index is calculated by
What did Adam Smith mean when he wrote, “Seldom do businessmen of the same trade get together but that it results in some detriment to the general public”?
Your study partner, Jean, has just said that monopolistic competitors use strategic decision making. How would you respond?
Why is it difficult for firms in an industry to maintain a cartel?
Is the demand curve as perceived by an oligopolist likely to be more or less elastic for a price increase or a price decrease?

Showing 1000 - 1100 of 1689

First
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Campus Ambassador

Company Info

Security
Copyrights
Privacy Policy
Terms & Condition
SolutionInn Fee
Scholarship

Services

Sitemap
Fun
Definitions
Become Tutor
Study Help Categories
Recent Questions
Expert Questions

Copyright © 2024 SolutionInn All Rights Reserved.

Get the SolutionInn - Study Help App