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# Monopolies

Studies have concluded that the deadweight loss of monopoly power in the US is less than 0.5 percent of GNP. From your knowledge of the determinants of the deadweighlt loss, explain why such a small figure is plausible.

Explain why a certain triangular area is a measure of the deadweight loss of monopoly. What information do you require in order to calculate the size of this triangle?

### Monopoly question

Suppose that we, as consumers, have the option of having an AIDS vaccine produced by a monopoly or of not having the vaccine produced at all. Under which option would we better off? Why?

### Marginal cost/maximizing profit at a ski resort

When a ski resort with some monopoly power is maximizing profit, price is greater than marginal cost. Thus, consumers are willing to pay more for additional lift tickets than the tickets cost to produce. So why does the ski resort not charge a lower price per lift ticket and increase output?

### Which of the following is true under monopoly?

Which of the following is true under monopoly? a. profits are always positive. b. P > minimum of ATC. c. P = MR. d. none of the above are true.

### The Firm's Profit - Monopoly and Market Power

A monopolist can sell in two markets defined by: QA = 5500- lOOPA and QB = 18000 - 400PB a) If the monopolist charges different prices in each market, what is this practice called? b) It costs the firm \$20,000 even if it produces nothing, and \$15 for every unit above that. FInd the price and quantity sold in each market. WHa

### Marginal cost and profit maximization

1) Fill in the missing values in the following table: Quantity Fixed cost Variable Cost Total Cost Total Average Cost Marginal Cost 0 \$55 \$0 \$55 \$0 1 \$55 \$30 \$85 \$55 2 \$55 \$55 \$110 \$27.50 3 \$55 \$75 \$130 \$18.33 4 \$55 \$105 \$160 \$13.75 5 \$55 \$1

### Market structure

Pharmaceutical companies can expect to earn large profits from blockbuster drugs (for high blood pressure, depression, ulcers, allergies, sexual dysfunction) while under patent protection. What is the source of these profits? Upon patent expiration, numerous rival drug companies offer generic versions of the drug to consumers. (

### Sporting Market Structures: Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Describe the market structure in which a typical professional sports team in or outside the United States (e.g. New York Yankees, Kansas City Wizards, New Jersey Nets, Manchester United, etc.) operates. Which structure Do they cleanly fit into (Monopoly, Oligopoly, etc.)? If yes, describe which one and support the conclusion you

### USA pharmaceutical industry

Can you please assist me with answering the following question relating to the "pharmaceutial industy". Any citations should be from US sites/books/articles if possible. Relate the issues of ease of market entry and exit, and at what level of production will a firm seek to maximize profits? How does this level compare to o

### The Nature of Competitive Industries - Pizza Sellers

Firms like Papa John's, Domino's, and Pizza Hut sell pizza and other products that are differentiated in nature. While numerous pizza chains exist in most locations, the differentiated nature of these firms products permits them to charge prices above marginal cost. Given these observation, is the pizza industry most likely a mo

### Economics discussion questions

DQ#1 Among the four principal market structure models, monopoly and oligopoly offer the best opportunities for a firm to earn economic profits in the long run. What are some strategies for the firm which is earning economic profits to legally sustain them over time? DQ#2 In the purely competitive firm, producing a homo

### Manifesto of the Communist Party

Selections from "Manifesto of the Communist Party," Karl Marx and Friedrich Engels, p. 22. This polemic, which represents a call to arms to the working people of the world (the proletariat), were the seeds of the communist revolutions that occurred in the 20th century, revolutions that have largely been discredited. Marx

### A hypothetical monopoly firm is characterized by the following diagram.

I am having trouble intrepreting graphs, and need some help practicing. Please provide a detailed step by step discussion to these questions. Question #5 A hypothetical monopoly firm is characterized by the following diagram. See document for graphs and answer the following questions. a. Assuming that the

### Pricing Strategies

You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -2, while group 2's is -6. your marginal cost of producing the product is \$10. A) Determine your optimal markups and prices under third-degree price discrimination. B) Ident

### Answer questions relating to a graph of a monopolist. Discuss the monopoly in the context of the pharmaceutical industry.

In the diagram included below: a. What does the area EBCD represent? Provide a full explanation of the concept that is shown in that area. b. What does the point A, which occurs at the intersection of the green and blue lines, represent? c. What does point E represent, and how is it determined? d. Why might it be appr

### Marginal revenue curve & profit maximizing price

A new competitor enters the industry and competes with a second firm, which had been a monopolist. The second firm finds that although demand is not perfectly elastic, it is now relatively more elastic. What will happen to the second firm's marginal revenue curve and to its profit maximizing price?

### Efficient points on the PPF

2. Suppose a production possibilities frontier (or curve) for an economy that produces beef and potatoes. Using terms like "on the curve," "within the curve," and "beyond the curve," indicate the position of an impossible point, an efficient point, and an inefficient point. What would happen to the curve following a severe hur

### Monopoly

A monopoly will always earn economic profit because it is able to set any price that it wants to. Is this a true or false statement and why?

### Consider the following monopoly that produces paperback books

Please see the attached file. Consider the following monopoly that produces paperback books: Fixed Costs = \$1,000 Marginal Costs = \$1 (and is constant) A) Draw the average total cost curve and the marginal cost curve on the same graph. B) Assume that all households have the same demand schedule, given by the following rela

### You are the manager of a firm that sells its product in a competitive market at a price of \$40.

You are the manager of a firm that sells its product in a competitive market at a price of \$40. Your firm's total cost function is C=4Q^2 and marginal cost is MC=8Q. What is your profit-maximizing quantity (Q) and price (P), and what is your firm's economic profit? If you operate a typical firm in this market, what will happen i

### Entry into Monopoly

Suppose a company LCD has been operating under a monopoly with large profits for many years. Another company BC (with no quality or cost advantage) plans to enter the market. Assuming that the countries can talk to each other and know each other's moves; What would the pricing outcome be? What would happen to LCD's profits a

### Please discuss the role of advertising in product differentiation and the intent of advertising in altering the firm's demand curve

Please discuss the role of advertising in product differentiation and the intent of advertising in altering the firm's demand curve

### There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P.

There are only two firms in the widget industry. The total demand for widgets is Q = 30 - 2P. The two firms have identical cost functions: TC = 3 + 10Q. The two firms agree to collude and act as though the industry were a monopoly. At what price and quantity will this cartel maximize profit?

### Microsoft antitrust trial

Details: The Microsoft antitrust trial (United States vs. Microsoft) has been one of the biggest investigations of antitrust behavior since the turn of the century. You are supporting the Government, research and present a cohesive argument to the other side. Keep in mind that this is an economics course, and we are not practic

### Profit Maximizing Price in Monopoly

In a monopoly with a 50-50 chance of a demand curve of P=20-Q or P=40-Q and MC=Q, what is the profit maximizing price. Please show the steps to find either \$5, 10, 15, or 20.

### Monopolies and Oligopolies

What are some similarities and differences between monopolies and oligopolies? How would you classify Microsoft? How would you classify the power industry in your area? Explain your reasoning.

### The nature of monopoly concepts

Indicate whether each of the following statements is true or false, and explain why. A. The Justice Department generally concerns itself with significant or flagrant offences under the Sherman Act, as well as with mergers for monopoly covered by section 7 of the Clayton Act. B. When a signal seller is confronted in a marke

### Monopolistic competitor

When will a monopolistic competitor go out of business? Also, how can monopolistic competitors maintain high prices?

### Economic Output and Production

The marginal cost of producing coal for a company is MC = 5Q, while the marginal cost of pollution is MC = 3Q. The demand for coal is given by Q = 25 &#61485; .25P. The firm's total revenue is price time's quantity (or units of output), and total profit (or loss) equal total revenue less total cost. Based on that information, an