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# Monopolies

### Diagram that is a Perfect Competition

A, b, or c? In which diagram in a natural monopoly likely to be the case? a, b, or c? explain why in each case. See the attached file.

### Elastic and Inelastic demand

1. A regulated transportation monopoly is losing money. The Monopoly goes to its government regulators with a request to raise their rates (price). An economist on the regulatory commission says that raising rates will bring in less revenue as customers change to substitute forms of transportation. The Monopoly and the economi

### 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

### Why monopolies might not maximize their profits

Why might monopolies find it in their long-term self-interest to not maximize their profits but to opt instead for an acceptable profit?

### Violations of the Sherman Act and the Clayton Act

Why might a firm charged with violating the Clayton Act, Section 7, try arguing that the products sold by the merged firms are in separate markets? Why might a firm charged with violating Section 2 of the Sherman Act try convincing the court that none of its behavior in achieving and maintaining its monopoly was illegal?

I need help answering the following true/false question with an explanation and example in simple terms. Your help is GREATLY appreciated! Q: Price is a poor way of rationing important scarce resources such as gasoline, housing or food.

### 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?

### Economics in a Global Environment

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 practi

### 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

### Monopoly Demand Elasticity

In a monopoly with a Marginal Cost of \$10 per unit, zero fixed costs, an inverse demand function of P=50-Q, what is the demand elasticity of a unit at the monopoly price and quantity. Either it is -1.5, -2, -2.5 or 2. Please show the steps to solve.

### 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.

### Profit Maximization for Perfect Competition and Monopolies

1. In a competitive market at a price of \$50 and cost function of C=50+5Q2 what is the maximum profit? Show how the solution was reached. 2. In a competitive market at a price of \$60 and cost function of C=50+3Q2 what is the maximum profit? Show how the solution was reached. 3. In a competitive market with a price of \$1

### 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

### Monopolies for Price Discrimination

What is an example of price discrimination within the aviation community that could very well be considered illegal? In your opinion, should lobbying be legal or illegal?

### Monopolies Effects on Capitalistic Economy

What effects do monopolies have on a capitalistic economy? What are some advantages and disadvantages of monopolies? Give some examples of monopoly type companies? What are some key barriers to entry and exit for monopolies and oligopolies?

### market manipulation

How can suppliers manipulate markets to generate profits? What would be a good example of this?

### Pure competition, pure monopoly, monopolistic competition, and oligopoly

Briefly state the basic characteristics of pure competition, pure monopoly, monopolistic competition, and oligopoly. Under which of these market classifications does each of the following most accurately fit? (a) a supermarket in your hometown; (b) the steel industry; (c) a Kansas wheat farm; (d) the commercial bank in which you

### Monopoly Market Structure

The water company is privately owned and is the only water company in town. It is licensed and franchised by the city for a 10 - year term, just renewed. They advertise on TV, enclose a newsletter with their bills, and donate to local school activities. Why do they do these things?

### Monopoly Profits & Consumer Surplus

A U.S. pharmaceutical company holds a patent on a drug in the U.S. and an analogous patent in Canada. Its marketing department has identified the following inverse demand curves for this drug in the U.S. and Canada: P us =1,000 - Qdus and P can =500 - Qdcan The marginal revenues for each market i

### Sherman and Clayton Act

Briefly summarize the main tenets of the Sherman Act of 1980 and the Clayton Act of 1914. Do these acts really promote greater competition? Why or why not?

### Lerner-Index, Price Elasticity, & Profit

1) If the demand function is P = 10 - Q, the marginal cost is constant at 4 and the total cost function is 4Q, what is the profit maximizing monopoly output and profit? What is the price elasticity at the monopoly price and output? 2) What is the Lerner-Index of Market Power for this monopoly at this price and output? 3) W

### 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

### Perfectly Competitive, Monopoly

4. If the market is perfectly competitive, what does profit equal? 5. If the market is a monopoly market, what does profit equal? 6. Redraw the figure and label consumers' surplus when the market is perfectly competitive and when it is monopolized.

### Applying concepts of managerial economics.

I need help understanding and applying concepts of managerial economics. 1. The manager of American Box Company conducts a study and notes his 10 workers produce approximately 2,000 boxes per week. He assumes that if he can employ 20 workers, the number of boxes will increase to 4,000 per week, and if he can employ 30 worker

### Economics of internet (double marginalization/sequential monopoly)

See attached file for full problem description. I also attached the relevant lecture slide.