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Task: Several of you have mentioned that monoplies arise from economies of scale: a particularly interesting issue is the concept of Minimum Efficiency Scale (MES).
Assume Boeing Inc. (of the United States) and Airbus Industrie (of Europe) rival for monopoly profits in the Canadian aircraft market. Suppose the two firms face identical cost and demand conditions
When a cherry orchard in Oregon adds an additional worker, the total cost of production increases by $24,000. Adding the worker increases total cherry output by 600 pounds. Therefore, the marginal c
Explain the difference between a monopoly and an oligopoly, the welfare effects of monopoly, cost advantages that create monopolies, government actions that create monopolies, and government actions
The figure above illustrates the market for antifreeze. Suppose the government decides to implement an $8 sales tax on every gallon of antifreeze sold. A. In the figure, how would I illustrate
Calculate the Herfindahl-Hirschman Index before and after the merger of Firm 2 and Firm 3. (Assume that the combined market share after the merger is 20 percent) Would you view a merger of Firm 2 an
The local widget monopolist is retiring. He owns the only machine that produces widgets. He offers to sell the widget machine to you for $52,500. After you purchase the machine you can produce as ma
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 increa
Problem: When will a monopolistic competitor go out of business? Also, how can monopolistic competitors maintain high prices?
When a signal seller is confronted in a market by many small buyers, monopsony power enables the buyers to obtain lower prices than those that would prevail in a competitive markets.
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.
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.
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 and what would determine BC's profits?
If there are 400 households in the economy, draw the market demand curve and the marginal revenue schedule facing the monopolist?
If you operate a typical firm in this market, what will happen in the long run in the market's Q, P and profits if there is no change in demand for the product? Describe a strategy that you can impl
Why is economics regarded as a science? Why do economists often disagree about policy issues? Why do we need policymaking (government interventions) at all? Please substantiate your answer with real
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?
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 elas
Why might it be appropriate for the government to allow a pharmaceutical company to have a monopoly in the production of a drug?
Problem: 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?
Q1. Determine your optimal markups and prices under third-degree price discrimination. Q2. Identify the conditions under which third-degree price discrimination enhances profits.
Question 1. In time, what do you think would happen if there were an "abolition of all right of inheritance?" Question 2. While Marx and Engels advocated the "establishment of industrial unions, esp
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
Use the casual view of structure, conduct, and performance to explain the role of differentiation in the market for pizza. Then apply feedback critique to the role of differentiation in the industry