1. (20 points) In the following list is a number of well-known companies and the product that they sell. Which of the four types of markets (perfect competition, monopoly, monopolistic competition, oligopoly) best characterizes the markets in which they compete? Explain why. Hint: You may wish to distinguish between national and
While the Department of Justice and FTC have allowed some mergers and prohibited others, the industry's average price has tended to fall whenever a merger has been permitted. Is it correct then to infer that the authorities should have been more lenient and permitted more mergers?
I need some help with this question: Is Microsoft a monopoly? Why or why not? If it is not now, was it ever? If it is, should it be broken up?
-Explain the difference between a monopoly and an oligopoly, and a cartel. -Provide an example of a monopoly, an oligopoly, and a cartel. -What are the welfare effects of monopolies and oligopolies. -How does game theory explain the interactions of firms within oligopolies and cartels? -What is the economic purpose of OPEC.
Is Microsoft a monopoly? Why or why not? Research this case.
The problem gives this chart: Competitor Rank Market A Market B Market C Market D 1 40 25 10 50 2 30 25 10 25 3 15 10 8 10 4 10 10 8 10 5 5 6 8 2 6 5 8 2 7 5
9. Professor Michael Porters generic strategy options for competing are the differentiation approach and the cost leadership approach. The first involves competing by having a better product and the second by having a lower cost that ones competitors. Relate this strategy to the monopolistic competitive model.
Imagine monopolizing a service or product of your choice. Discuss how you would go about setting prices for your product or service. Select a non-monopolized product or service with which you are familiar and determine how the consumption of that product or service would differ if it were controlled by a monopoly.
Willy's Widgets, a monopoly, faces the following demand schedule (sales in widgets per month): Price Quantity demanded $20 40 $30 35 $40 30 $50 25 $60 20 $70 15 $80 10 $90 5 $100 0 Calculate marginal revenue over each interval in the schedule, for example, between Q = 4
In the early 1980's just as serious health effects were being noted about sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content did not change) and the name of Sugar Flakes to Frosted Flakes (still sugar content remained the same); General Mills produces two cereals (Total and Wheaties) that
We study the first two (of four) market structures: perfect competition and monopoly. They are at opposite ends of spectrum as far as market structures go. There are many factors that are used to differentiate these structures including: who establishes the price, the number of firms, barriers to entry, types of products, i
Provide detailed analysis of pricing strategies specifically related to each type of market structures: Perfect competition Monopolistic Competition Oligopoly Monopoly
Movie theaters, airlines, and many other businesses like to charge customers different prices based on time of the day, age, and purchase dates. Why? Provide an example of a price discrimination for a good or service that you thought it to unfair. Do you still believe that the discrimination is unjustifiable
The monopolist and the perfect competitor differ in that: they face different demand curves the monopolist does not always produce at an output at which MC=MR the monopolist is always a large firm the monopolist is more efficient The monopolist is a(n): imperfect competitor and has a horizontal demand
Details: There are many different types of monopolies which exist within the market. you are going to talk about the different kind of monopolies, their place in the market, and their effect on society. please discuss the following: - Define a monopoly. - Find two examples of monopolies and they cannot be the same type of mo
In a celebrated case tried during 1998, the department of justice charged microsoft corporation with a wide range of anticompetitive behavior. Among the charges leveled by the DOJ was the allegation that Microsoft Illegaly "bundled" the sales of its microsoft explorer with its basic windows operating system. DOJ alleged that by
Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?
You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P=100-2Q and your cost function is C(Q)=20Q. a. Determine the optimal two part pricing strategy. b. How much additional profit do you earn using a two part pricing strategy compared with charging the consumer a per unit
Address the differences between monopolies, monopolistic competitions, and oligopolies.
A per-unit tax t>0 is levied on the output of a monopoly. The monopolist faces demand q=p^-e, e>1, and has constant average costs. Show that the monopolist will increase price by more than the amount of the per-unit tax.
I need help understanding the questions being asked below. 1. This week, we will be studying different market structures. And remember monopolistic competition is not the same as monopoly or competition, it is its own unique market structure. Also, remember we are describing product market structures, not industries. And
(1) Assume that firms in the short-run are earning above-normal profits. Explain what will happen to these profits in the long-run for the following markets: (i) Pure monopoly (ii) Oligopoly (iii) Monopolistic competition (iv) Perfect competition
Calâ??s Cab Company (CCC) has a taxi monopoly in Wen Kroy. The demand for taxi services in Wen Kroy is given by Q = 1,500 - P. CCCâ??s costs are given by TC = 100 - Q2 + 5Q3. Its maximum monopoly QUANTITY is:
The Smith's Company's marketing manager has determine that the price elasticity of demand for its product equals -2.2. According to the studies he has carried out, the relationship between the amount spent by the firm on advertising and its sales as follows: Advertising Expenditure Sales $100,000
What are the advantages of the Herfindahl index over concentration ratios in measuring the degrees of concentration in an industry? (b) What is the disadvantage of both?
Even if firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away. Explain (include an explanation of economic profit in your explanation). Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn't coll
1. Suppose a monopolist could perfectly price discriminate (i.e., this would be 1st degree price discrimination). Compare the consumer surplus, producer surplus, and total surplus in this situation to those same measures in a perfectly competitive market. 2. In a large number of cities around the world, the local, tax-support
The pizza market is divided as follows: Pizza hut 20.7% Domino's 17.0 Little Caesar's 6.7 Pizza Inn 2.2 Round Table 2.0 All others 51.4 a. How would you describe its market structure? b. What is the approximate Herfindahl index? c. What is the four-firm concentration ratio?
A firm that faces the entire demand curve of an industry would be a/an: a. perfect competitor b. monopolist. c. monopolistic competitor d. oligopolist
Explain what natural monopoly is in terms of the relationship between cost curves and the demand curve. If the market is left to itself, what price and output will result?