What happens if there is no government control on monopolistic sellers
Homework Answers
Government regulation on monopolistic sellers ensures that government oversees the price, outputs, entry and exit of firms in a monopolistic competitive market. In the absence of government regulation, monopolistic firms have full control over price, the level of output produced and which firms enter and leave the industry. This will result in exploitation of consumers because in the absence of government regulation, monopolistic firms have excessive market power which they will utilize to their fullest advantage. Consumers will have to pay very high prices and firms will keep output low in order to push the prices upwards. New firms will find it difficult to enter the market as existing firms will collude making it very difficult for new entrants.
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What happens if there is no government control on monopolistic
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In monopolistic competition, what market force works against short-run profits? Increasing the number of sellers shifts...
In monopolistic competition, what market force works against short-run profits? Increasing the number of sellers shifts supply. The availability of substitutes shifts demand. The availability of substitutes shifts supply. Increasing the number of sellers shifts demand.
2 pts Question 11 Sellers in the pencil industry lobbied for the government to impose a...
2 pts Question 11 Sellers in the pencil industry lobbied for the government to impose a price control to support their businesses. The price control was set at P2 Using the Figure 4, what were the consequences in this market? Figure 4 Price S P (56) P,(56) D 90,000 105,000 120,000 Quantity
A unique feature of monopolistic competition is many sellers similar products differentiated products free entry and...
A unique feature of monopolistic competition is many sellers similar products differentiated products free entry and exit significant barriers to entry and exit
When the government decides to impose a tax on sellers of a good or service, sellers...
When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold. Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model of supply and demand, describe what would happen to the price and quantity of tires sold. Would the amount of tax paid by the consumer...
1. What is the difference between a natural monopoly and a monopolistic practice? 2. Why are...
1. What is the difference between a natural monopoly and a monopolistic practice? 2. Why are monopolistic practices illegal? 3. What happens to the price and the quantity produced under monopoly compared to what happens in perfect competition? 4. What is the difference between perfect competition and monopolistic competition? 5. Why is oligopoly so criticized? In other words, what happens to the price and the amount produced under oligopoly compared to what happens in perfect competition or monopolistic competition?
Question 2 If the government places a tax on sellers in a market, who will pay...
Question 2 If the government places a tax on sellers in a market, who will pay the tax? (A) Buyers and sellers equally. B Only buyers. C) It depends on the situation in the market. Only sellers. E More sellers than buyers.
A. Discuss the characteristics of monopolistic competition
4. A. Discuss the characteristics of monopolistic competition B. Examine how monopolistic competition is different from perfect competition. C. Explain why it is necessary for monopolistic competition to have many sellers.
7) If government deficits decrease, what happens to the equilibrium price of bonds?
7) If government deficits decrease, what happens to the equilibrium price of bonds?
1- Consider a monopolistic market where the government has decided to implement lump-sum tax. Which of...
1- Consider a monopolistic market where the government has decided to implement lump-sum tax. Which of the following are true? Select all that apply. The monopolist loses profit. The government gains revenue. The monopolist is forced to reduce their prices. The monopolist is forced to sell less products. 2-Consider a monopolistic market where the government has decided to implement lump-sum tax. Which of the following are true? Select all that apply. The monopolist loses profit. The government gains revenue. The...
Now suppose that the government imposes a $2 tax per case on the sellers of microwave...
Now suppose that the government imposes a $2 tax per case on the sellers of microwave popcorn. The graph below shows the effects of this tax. Supply Demand 100 200 300 400 500 600 700 800 900 Quantity Using the information in the graph above, identify each of the following (after the tax is imposed): e. the new equilibrium price and quantity f. price paid by buyers g. price received by sellers h. consumer surplus i. producer surplus j. government...
In monopolistic competition, what market force works against short-run profits? Increasing the number of sellers shifts supply. The availability of substitutes shifts demand. The availability of substitutes shifts supply. Increasing the number of sellers shifts demand.
2 pts Question 11 Sellers in the pencil industry lobbied for the government to impose a price control to support their businesses. The price control was set at P2 Using the Figure 4, what were the consequences in this market? Figure 4 Price S P (56) P,(56) D 90,000 105,000 120,000 Quantity
Question 2 If the government places a tax on sellers in a market, who will pay the tax? (A) Buyers and sellers equally. B Only buyers. C) It depends on the situation in the market. Only sellers. E More sellers than buyers.
7) If government deficits decrease, what happens to the equilibrium price of bonds?
Now suppose that the government imposes a $2 tax per case on the sellers of microwave popcorn. The graph below shows the effects of this tax. Supply Demand 100 200 300 400 500 600 700 800 900 Quantity Using the information in the graph above, identify each of the following (after the tax is imposed): e. the new equilibrium price and quantity f. price paid by buyers g. price received by sellers h. consumer surplus i. producer surplus j. government...
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