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Read the article "Is Google Gaining a Monopoly on the World's Information?" Does Google enjoy a barrier to entry? What is the source of that barrier, if any?
Draw a diagram depicting the firm's profit-maximizing price and output level. Why is marginal revenue less than price for this firm?
At what output rate and price does the monopolist operate? In equilibrium, approximately what is the firm's total cost and total revenue?
Discuss how it may be profitable for South Korean manufacturers to sell new autos at a lower price in the United States than in South Korea.
Conditions for Price Discrimination List three conditions that must be met for a monopolist to price discriminate successfully?
What has happened to the price elasticity of demand for firstclass mail in recent years?
Discuss why is society worse off under monopoly than under perfect competition, even if both market structures face same constant long-run average cost curve?
Revenue Curves Why would a monopoly firm never knowingly produce on the inelastic portion of its demand curve?
Revenue Schedules Explain why the marginal revenue curve for a monopolist lies below its demand curve, rather than coinciding with the demand curve.
Revenue for the Monopolist Why is it impossible for a profit-maximizing monopolist to choose any price and any quantity it wishes?
Revenue for the Monopolist How does the demand curve faced by a monopolist differ from the demand curve faced by a perfectly competitive firm?
How did the De Beers cartel try to maintain control of the price in the diamond market? How has this control been undermined?
Find three or four resources that discuss the economic definition of perfect competition.
On the Results page, go to the Magazines section. How well does the description fit the four characteristics of perfect competition?
Analyze the long-run adjustment to the income change. Be sure to discuss any changes in output levels, prices, profits, and the number of firms.
Discuss the firm's short-run response to a reduction in the price of a variable resource.
In Professor Vernon Smith's experiment, which buyers ended up with a surplus at the market-clearing price of $2? Which sellers had a surplus?
Perfect Competition and Efficiency Define productive efficiency and allocative efficiency. What conditions must be met to achieve them?
Demand Under Perfect Competition What type of demand curve does a perfectly competitive firm face? Why?
Market Structure Define market structure. What factors are considered in determining the market structure of a particular industry?
If the firm is producing efficiently, what is the marginal rate of technical substitution between labor and capital?
Scale Economies and Diseconomies at McDonald's How does having a menu that is uniform around the country provide McDonald's with economies of scale?
Discuss what are the benefits of staggered movie times allowed by multiple screens? What is the benefit to a multiscreen theater of locating at a shopping mall?
Long-Run Average Cost Curve Explain the shape of the long-run average cost curve. What does "minimum efficient scale" mean?
What types of changes could shift the long-run average cost curve? How would these changes also affect the short-run average total cost curve?