A “natural monopoly” is the result of a. Government regulation b. Constant average cost c. Decreasing...
A “natural monopoly” is the result of
| a. |
Government regulation |
|
| b. |
Constant average cost |
|
| c. |
Decreasing average cost |
|
| d. |
Increasing average cost |
Homework Answers
A natural monopoly is a type of monopoly that arise for increasing the start up cost.if the initial cost of a product is higher then natural monopoly arise beacause here constant fixed rate is obtained.most mordern example of natural monopoly are google,facebook beacause here large data handling is done by online retailing.
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A “natural monopoly” is the result of
a.
Government regulation
b.
Constant average cost
c.
Decreasing...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
V Question answering. (20%) Explain with economic model the pricing regulation of government on natural monopoly...
V Question answering. (20%) Explain with economic model the pricing regulation of government on natural monopoly ma firms (million $): turnover Firm A 300 Firm B 100 Firm C 600 Firm D 50 Firm E 400 Firm F 650 Firm G 350 Firm H 2000 Firm I 1500 Firm J 50 Questions: (1) CR8 (5% (2) HHI (5%) (10%) if Firm H and Firm I merger (suppose data of individual firm does not change) (3) CR8,
V Question answering. (20%)...
(Type answer) A) Briefly explain regulation in the case of a natural monopoly. Provide 3 common...
(Type answer) A) Briefly explain regulation in the case of a natural monopoly. Provide 3 common examples of regulation. Briefly discuss the benefits of privatization set out in the text and explain what is required for privatization of a nationalized asset in order for privatization to work well. B) Briefly discuss what the poverty rate, including what it is, how it is determined, and how this relates to the near poor. C) List the variety of policy tools available to...
Which of the following types of economic regulation is most likely to encourage a natural monopoly...
Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs? rate of return regulation average cost pricing rule O price cap regulation None of the above encourages cost cutting.
Unanswered Natural Monopoly Which of the following is NOT true? A natural monopoly occurs whenever the...
Unanswered Natural Monopoly Which of the following is NOT true? A natural monopoly occurs whenever the average costs are declining. B A natural monopoly dissuades entry by increasing its price. C A natural monopoly firm has cost advantage over potential firms Unanswered
Sketch a natural monopoly firm under marginal cost pricing regulation. Label its price, quantity, and profit....
Sketch a natural monopoly firm under marginal cost pricing regulation. Label its price, quantity, and profit. What is the deadweight loss (loss in consumer and producer surplus) if regulation is effective?
If the government requires a natural monopoly to price at marginal cost, more firms will be...
If the government requires a natural monopoly to price at marginal cost, more firms will be able to enter the market. monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. producer surplus will increase because quantity supplied is greater. monopoly firms will operate at a loss because P<AC.
8. Natural monopoly analysis
8. Natural monopoly analysisThe following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.Monopoly Outcome024681012141618201009080706050403020100PRICE (Dollars per subscription)QUANTITY (Number of subscriptions)DMRMCATCWhich of the following statements are...
1. A natural monopoly has an incentive to pad its cost of production under which type...
1. A natural monopoly has an incentive to pad its cost of production under which type of regulation? Group of answer choices Profit regulation. Social regulation. Output regulation. Price regulation. 2. Government failure occurs when Group of answer choices Dealing with a natural monopoly. Public goods are present. Government intervention fails to improve economic outcomes. There is market power. 3. When firms have the ability to restrict output, raise prices, stifle competition, and inhibit innovation, the market failure involved is...
8. Natural monopoly analysis The following graph shows thedemand (D) for gas services in the...
8. Natural monopoly analysis The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local gas company, a natural monopolist.On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.Which of the following statements are true about this natural monopoly? Check all that...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
V Question answering. (20%) Explain with economic model the pricing regulation of government on natural monopoly ma firms (million $): turnover Firm A 300 Firm B 100 Firm C 600 Firm D 50 Firm E 400 Firm F 650 Firm G 350 Firm H 2000 Firm I 1500 Firm J 50 Questions: (1) CR8 (5% (2) HHI (5%) (10%) if Firm H and Firm I merger (suppose data of individual firm does not change) (3) CR8,
V Question answering. (20%)...
Which of the following types of economic regulation is most likely to encourage a natural monopoly to NOT inflate its costs? rate of return regulation average cost pricing rule O price cap regulation None of the above encourages cost cutting.
Unanswered Natural Monopoly Which of the following is NOT true? A natural monopoly occurs whenever the average costs are declining. B A natural monopoly dissuades entry by increasing its price. C A natural monopoly firm has cost advantage over potential firms Unanswered
If the government requires a natural monopoly to price at marginal cost, more firms will be able to enter the market. monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. producer surplus will increase because quantity supplied is greater. monopoly firms will operate at a loss because P<AC.
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