Consider the following statement from the talk: There are exactly two kinds of businesses in this...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Consider the following statement from the talk: "There are exactly two kinds of businesses in this world. There are businesses that are perfectly competitive and there are businesses that are monopolies, and there is shockingly little that is in between. This dichotomy is not understood very well because people are constantly lying about the nature of businesses they are in." Explain the reasoning behind this statement. Why do monopolies pretend to be competitive? Discuss historical examples of the consequences that a firm might face when they are found to possess excessive market power. Why do competitive firms claim to possess market power? Do not quote from the talk, but provide an explanation framed in economic terms instead. What incentives do these firms face? How are their stories shaped by the degree of competition in their markets, characteristics of the demand for their product, etc. Consider the following statement from the talk: "There are exactly two kinds of businesses in this world. There are businesses that are perfectly competitive and there are businesses that are monopolies, and there is shockingly little that is in between. This dichotomy is not understood very well because people are constantly lying about the nature of businesses they are in." Explain the reasoning behind this statement. Why do monopolies pretend to be competitive? Discuss historical examples of the consequences that a firm might face when they are found to possess excessive market power. Why do competitive firms claim to possess market power? Do not quote from the talk, but provide an explanation framed in economic terms instead. What incentives do these firms face? How are their stories shaped by the degree of competition in their markets, characteristics of the demand for their product, etc.
Expert Answer:
Answer rating: 100% (QA)
The Dichotomy of Perfect Competition and Monopolies Is it Realistic The statement suggests a clear division between perfect competition and monopoliesignoring nuances in realworld marketsWhile there i... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
In West Bend, Indiana, there are exactly two kinds of workers. One kind has a (constant) marginal product worth $10 and the other kind has a (constant) marginal product worth $15. There are equal...
-
what would you like to recommend to Australian government in regards to their fiscal stimulus policy for supporting covid affected society?
-
What are the requirements for a computer to exhibit human-level intelligence? How long will it be before we have the technology to design such computers? Do you think we should push to try to...
-
Best profile to obtain resistance against wear is ____.
-
Martin Alexander created a pilot script for a new television sitcom entitled Loony Ben. Beginning in March 2006, Alexander submitted copies of the script to agents, producers, directors, production...
-
Kayak Co. budgeted the following cash receipts ( excluding cash receipts from loans received) and cash disbursements ( excluding cash disbursements for loan and interest payments) for the first three...
-
a) Market refers to the mechanism through which all goods and services are voluntarily exchanged among different owners. Through price, markets allocate scarce resources among competing uses. Discuss...
-
Assuming a lower specification limit of 47 grams and an upper specification limit of 53 grams, what is the process capability of this process? How many defects would you expect in one million bags?...
-
The HR department at Basic Elements, a software development firm, has begun testing employee personality and preferences to reorganize their teams such that team members and leaders are matched. They...
-
When we change the price of a good, the total effect (TE) in quantity demanded is caused by two separate effects, the substitution effect (SE) and income effect (IE). Therefore, we have: TE = SE + IE...
-
On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company's first month. April 2 Nozomi invested $44,000 cash and computer...
-
The following data shows the beginning cash balance along with the cash transactions for the month of January. Beginning cash balance $ 3,200 Cash payment toward long-term loan 1,000 Cash payment for...
-
Determine the domain of f(x) notation. === log3(42). Write your answer in interval
-
Required information RWP7-1 (Algo) Great Adventures Continuing Case [The following information applies to the questions displayed below.] Tony and Suzie see the need for a rugged all-terrain vehicle...
-
Strategic Management Insight is an online platform dedicated to providing comprehensive information about Strategic Management related topics. As part of its resources, a set of SWOT examples for...
-
The Alert Company is a closely held investment-services group that has been very successful over the past five years, consistently providing most members of the top management group with 50% bonuses....
-
If the demand function for zarfs is P = 10 Q, (a) At what price will total revenue realized from their sale be at a maximum? ______. (b) How many zarfs will be sold at that price? ______.
-
Sidewalk Sams brother Morgan von Neumanstern is an expected utility maximizer. His von Neumann-Morgenstern utility function for wealth is u(c) = lnc. Sams brother also sells sunglasses on another...
-
Al Deardwarfs cousin, Zwerg, makes plaster garden gnomes. The technology in the garden gnome business is as follows. You need a gnome mold, plaster, and labor. A gnome mold is a piece of equipment...
-
Which of the following is not a characteristic of common equity? A. It represents an ownership interest in the company. B. Shareholders participate in the decision-making process. C. The company is...
-
Investing the majority of the portfolio on a passive or low active risk basis while a minority of the assets is managed aggressively in smaller portfolios is best described as: A. The coresatellite...
-
All of the following are characteristics of preference shares except: A. They are either callable or putable. B. They generally do not have voting rights. C. They do not share in the operating...
Study smarter with the SolutionInn App