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compensation of monopoly workers

Answer 3 out of 6 questions.

1. Do employees of monopolies get paid more compared to workers (who do the same work) in other industries that are not monopolies?

2. What are some major ways that the "product is differentiative" among internet service providers?

3. What barriers to entry are there for the gasoline retail market?
4. If a firm has 90% of a market, is it a monopoly?

When considering YKK, what is the effect of considering Velcro, button, and snap products, in identifying YKK as a monopoly?

What idea am I trying to elucidate?

5.Why do governments "regulate" monopolies? (There are at least two reasons that I am fishing for.

6. Insurance companies are in oligopolies since state laws prevent nation-wide competition.

Note that in the health care reform that Congress is working on, the two most direct ways to lower insurance premium prices are not being implemented! That would be allowing national competition and limiting lawsuit damages.

How would these reforms lead to lower premium prices?

Solution Preview

In a monopoly, profits are generally higher than they are in companies with perfect competition. In perfect competition, any profit above what could be made in another industry would cause other companies to enter, which then reduces economic profits back to zero. But, this excess profit is not necessary passed on to workers (unless the monopoly is worker-owned). The owners of the ...

Solution Summary

Whether monopolies compensate their workers more than other companies do is discussed in the solution.