One of the potential social costs associated with the operation of monopolies is their ability to...
One of the potential social costs associated with the operation of monopolies is their ability to generate and sustain extra-normal or economic profits. Identify and explain a strategy that economists would employ to eliminate monopoly extra-normal or economic profits. (10 points)
Homework Answers
To eliminate monopoly , positive economic profit.The best policy is ,to set regulation of average cost pricing.
In average cost pricing,The Monopolist can charge the maximum price of any Quantity is equal to Average Total cost.
So the profit of Monopolist will be zero due to price only cover cost . So there will normal profit.
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One of the potential social costs associated with the
operation of monopolies is their ability to...
I missed the lecture over monopolies in Economics and am having trouble with these practice problems....
I missed the lecture over monopolies in Economics and am having
trouble with these practice problems.
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28. Firms will continue to enter a competitive industry until, in the LR, a. firms...
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8. Which ot the following statements is corroct a. The benefits that accrue to a monopoly's...
8. Which ot the following statements is corroct a. The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product b. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity c. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a d. The primary...
Mainly looking for qs 5 and 4 when considering what a social planner would do levels...
Mainly looking for qs 5 and 4 when considering what a social
planner would do levels of consumer surplus and producer surplus
need to be taken into account. Also need to find the different in
price for qs 5 not ratio but difference in price.
Spending on health care now constitutes a significant fraction of total expenditure. Understanding the efficacy of this spending is therefore relatively important. When it comes to contagious diseases, there are generally two strategies that can...
Please help me in both questions, thank you very much :) QUESTION 6 According to the...
Please help me in both questions, thank you very much :)
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this is the discussion question this is the answer given by one of my class mate Social structure, culture and social i...
this is the discussion question
this is the answer given by one of my class mate
Social structure, culture and social interaction all play a very
important role in creating the social fabric that we live in. An
example would be someone born into a wealthy family that benefits
from their family's socioeconomic status. This child is more likely
to have the advantage of attending a highly ranked high school and
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I missed the lecture over monopolies in Economics and am having
trouble with these practice problems.
Exercise 22 Assume a firm producing an output rate Q for which: 4 Would you recommend it to increase or decrease output? Why? 5 Is it productively efficient? Why? 6 Is allocative efficiency achieved? Why? 7 Ifit decreases output will unit costs decrease or increase? Why? 8 Should it produce more or less to maximize revenues instead? Why? 9 Should it produce more or...
Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance, pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking": firms are so small that they have no effect on market price. Agriculture is the clearest example, but government intervention in the...
8. Which ot the following statements is corroct a. The benefits that accrue to a monopoly's owners are equal to the costs that are incurred by consumers of that firm's product b. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing monopoly firm produces a quantity of output that exceeds the socially-efficient quantity c. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a d. The primary...
Mainly looking for qs 5 and 4 when considering what a social
planner would do levels of consumer surplus and producer surplus
need to be taken into account. Also need to find the different in
price for qs 5 not ratio but difference in price.
Spending on health care now constitutes a significant fraction of total expenditure. Understanding the efficacy of this spending is therefore relatively important. When it comes to contagious diseases, there are generally two strategies that can...
Please help me in both questions, thank you very much :)
QUESTION 6 According to the Herald Sun Newspaper, a study by the Centre for International Finance found that Australian monopolies perform better compared to monopolies elsewhere. Surprisingly, the research found that companies with monopoly power in Australia were three times more likely to invest in research and development than companies in competitive markets Which of the following are valid explanations for the existence of monopolies? 1. They have exclusive...
this is the discussion question
this is the answer given by one of my class mate
Social structure, culture and social interaction all play a very
important role in creating the social fabric that we live in. An
example would be someone born into a wealthy family that benefits
from their family's socioeconomic status. This child is more likely
to have the advantage of attending a highly ranked high school and
being exposed to a family emphasis on the importance...
demand curve (more sensitive to price)? Why? Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking"; firms are so small that they have no effect on market price Agriculture is the...
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