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Regulated Industries

Common, public, private goods and natural monopolies

Identify similarities and differences between common goods, public goods, private goods, and natural monopolies. Provide an example of each type of good and justify your answers. Discuss possible positive or negative externalities associated with each example. How do the externalities affect the economy?

Profit Maximizing Equilibrium Output

A firm produces output at a cost of: C = 50 + 20 X and sells it at a price of P = 220 - 4 X 1. Determine the profit maximizing equilibrium output, price and the total profit under two conditions: 1.1 A firm is a monopolist (15) 1.2 A firm under perfect competition (15) See attached file for full problem description.

Microeconomic Questions

1. Consider the following information for a simultaneous move game. If you advertise and your rival advertises, you each earn $5 million in profits. If neither of you advertise, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $15 million a

Natural Monopolies

Public utilities such as electricity are referred to as natural monopolies and are often subject to regulation by a state authority (the "public Regulatory Commission"). a) Explain why a public utility such as electricity is referred to as a "natural monopoly." b) Explain how and why an average cost pricing policy is applied

New Deal - Recovery

Franklin D. Roosevelt ' New Deal in the 1930's aid US to go through the depression. There were famous three Rs: relief, recovery and reform. Can I know what was the recovery? and what programs did he pass for recovery?

Microeconomic Multiple Choice

1.Consider the following entry game. Here, firm B is an existing firm in the market, and firm A is a potential entrant. Firm A must decide whether to enter the market (play "enter") or stay out of the market (play "not enter"). If firm A decides to enter the market, firm B must decide whether to engage in a price war (play "h

Economics of internet

EBay's Acquisition and Operation of Skype. See attached file for full problem description.

Antitrust Policy and Regulation

In 1993 Mattel proposed acquiring Fisher-Price for $1.2 billion. In the toy industry Mattel is a major player with 11 percent of the market. Fisher-Price has 4 percent. The other two large firms are Tyco, with a 5 percent share, and Hasbro, with a 15 percent share. The other two firms are Tyco, with a 5 percent share, and Ha

Tit fot Tat pricing

How can you determine if companies in an oligopoly are playing tit for tat pricing? Looking for illustration of Cournot Equilibrium and Reactive Curve.

Depository institution

What is a depository institution, and what types of depository institutions are found in the United States? How do they act as intermediaries between savers and borrowers? Why do they play this role? Some economists argue that deregulated deposit rates combined with deposit insurance led to the insolvency of many depository

Multiple choice questions

1. Which of these relations is correct? A) APC - APS = 1 B) MPC + MPS = 1 C) APC + MPC = 1 D) 1 + MPC = MPS 2. If supply increases and demand remains unchanged, equilibrium quantity will _______ and equilibrium price will ______________. A) rise, rise B) fall, fall C) fall, rise D) rise, fall

Managerial Economics

I need help with these questions. Which of the following enhances the ability of waste companies to collude? a) decals on waste receptacles b) high interest rates c) differentiated nature of products d) large number of firms When a worker announces that he plans to quit, say next month, the "threat" of

Homework help

This is the answer I received for posting 30071 below. I need to answer a second part to this respond. An industry with 20 firms but the CR = 80% is called "high concentration", for a concentration ratio of 80 to 100 percent is viewed as high concentration. Government regulators are usually most concerned with industries fall

Demand Chart

The graph below represents the monthly demand for a specialized laser-cutting tool. Assume that there is only 1 firm in the world that manufactures this laser tool. Its marginal and average cost curves are shown. Answer the questions below based on this information. a)Draw the firm's marginal revenue schedule. b)What is th

Price effects of regulation

The market demand for trucking services is: P = 500 - 0.004Q where Q is the number of units of trucking services demanded at the price P of a trucking service unit. Before trucking deregulation occurred in 1980, the industry priced as a government sanctioned cartel (i.e., as a m