Homework Answers
a.
Answer: monopoly profits would be low.
This happens because by paying the highest fee to the city (the highest bid), the monopolist incurs high cost, which reduces its profit margin.
b.
Answer: no; the users would not be better off.
They may be charged high, since the monopolist should recover the high cost.
c.
Answer: yes; this can be.
The way is to make open the cable-TV market for two or more service providers. Once this is done, they will compete to get more users (customers) and in this way they charge low, and make the betterment.
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Short Answer Questions I. Firms can compete to obtain a monopoly. For example, the city of...
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1. In what ways was Microsoft’s behaviour (a) against
the public interest; (b) in the public interest?
2. Being locked in to a product or technology is only
a problem if such a product can be clearly shown to be inferior to
an alternative. What difficulties might there be in establishing
such a case?
etwork effects Microsoft is a vertically integrated
firm (see page 87), with a dominant position in the operating
system market (i.e. Windows) and in certain application...
Will facebook be able to have a successful
business model without invading privacy? explain your answer?
could facebook take any measures to make this possible?
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