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# Monopolies

### 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

### Monopoly and monopoly power

1. Working in a call center Why is "calls per hour" a "better" measurement than "dollars collected per hour" for your agents? 2. Is Apple a monopoly? Does a firm have to be a "monopoly" to have "monopoly power"?

### 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

### Monopolies

Suppose you ran the only bakery in town that was currently very profitable. What things might you consider if you wanted to ensure that you continued to enjoy the same success in the future? What might you do to head off competition?

### Profit Maximizer

Please refer attached file for diagram. A hypothetical monopoly firm is characterized by the following diagram. a.Assuming that the above firm is a profit maximizer operating in the short run, determine its optimal price? b. Determine the firm's profit per unit. c.What is the ATC in dollars? d.If the above monopolist

### Dominant strategy

Suppose two competitors, Coa Inc., and Han, Inc., are locked in a bitter pricing struggle in the alumuninum industry. In the limit pricing payoff matrix, Coa can choose a given row of outcomes by offering a limit price ("up") or monopoly price ("down"). Han can choose a given column of outcomes by choosing to offer a limit price

### 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

### In order to maximize profits or minimize losses, a competitive firm will produce at the point where MC = MR. Do you agree or disagree with this statement? Explain your answer and use at least 2 examples in your response.

In order to maximize profits or minimize losses, a competitive firm will produce at the point where MC = MR. Do you agree or disagree with this statement? Explain your answer and use at least 2 examples in your response.

### 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

### TRUE or FALSE?

TRUE OR FALSE? (A) A high ratio of distribution cost to total cost tends to increase competition by widening the geographic area over which any individual producer can compete. (B) The price elasticity of demand will tend to fall as new competitors introduce substitute products. (C) Equilibrium in monopolistically competitive

### 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?

### Country analysis

3-4 paragraphs In your own words please The company you work for is expanding its business and would like to begin to trade with another country. Go to 2008 National Trade Estimate Report on Foreign Trade Barriers for specific country information. The URL for this link is: http://www.ustr.gov/Document_Library/Reports_Publ

### Air Line Industry Research Part II

Find two sources to help answer the following questions about the AIR LINE INDUSTRY. Research any negative or positive externalities the industry produces. Does the transaction of a buyer and seller directly affect a third party? Is the effect a negative or positive externality? How does the externality impact the economy?

### Monopoly and Monopolistic Competition

The Wilson Company's marketing manager has determined that the price elasticity of demand for its products equals -2.2. Accordingly to studies he carried out, the relationship between the amount spent by the firm on advertising and its sales is as follows: Advertising expenditure Sales \$100,000 \$1.0

### Economics - Two-firm oligopoly

In a two-firm oligopoly that has decided to jointly maximize profits, we would expect that the output: Would be split fifty-fifty. Would be greater than the monopoly quantity. Would be set where the sum of their MC's equals to the industry's MR. Would be determined by a federal mediator.

### monopoly signal costs

Which of the following is NOT a problem with monopoly? The price does not signal true cost. Monopolists typically force customers to purchase more than they want to. A monopolist may not produce at the lowest point of its average cost curve. The quantity produced is typically less than in pure competition.

### Monopoly, Demand Schedule, and Deadweight Loss

Price Quantity \$10 0 9 1 8 2 7 3 6 4 5 5 4 6 3 7 2 8 1 9 0 10 a. What price and quantity will the monopolist produce at if the marginal cost is a constant \$4.00? b. Calculate the deadweight l

### 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

### concept of monopoly welfare loss

P = 300 - .001 Q TC = 9,000,000 + 20 Q + .0004 Q² a) Find TR, MR and AR. b) Find the AVC, ATC and MC. c) Calculate the profit maximization level of activity. d) Calculate total revenue, total cot and profit or loss at profit maximization level of activity. e) Calculate elasticity of demand at profit maximization. f) Ca

### 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?

### Monopoly and Monopolistic Competition

7.Monopolists differ from perfect competitors because monopolists always make a profit? True or false? Why? 8.What are the "monopolistic" and the "competitive" elements of monopolistic competition?