________ occurs when price and quantity fixing agreements among producers are uncleared a) tacit collusion b) oligopoly c)monopolistc competition d)strategic collusion
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________ occurs when
a) tacit collusion
b) oligopoly
c)monopolistc competition
d)strategic collusion
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- Monopolies are generally economically inefficient if ________ exist(s). * A) a natural monopoly B) persistent economies of scale C) only a few firms D) no natural monopolyIf a natural monopoly like SMUD, with declining long run ATC, was forced to break up into several small competitive firms, the Price charged by the competitive firms should decrease as the firms become more efficient. Total production for the industry should increase because of the efficiency generated by increased competition.Problem 11-21 (algo) Suppose the European Union (EU) was investigated and proposed a merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is -1.2 and that it costs $16.30 produce and distribute each liter of Scotch. Based only on these data, provide quantitative estimates of the likely pre- and postmerger prices in the wholesale market for premium Scotch liquor. Instructions: Do not round intermediate calculations. Enter your final responses rounded to the nearest penny (two decimal places). Pre-merger price: $ Post-merger price: $
- ) Agatha's Inc. is about to introduce a new product in the market, but is not sure as to how it should price the product. The company is facing intense competition from five other companies. In such a situation, what should be Agatha’s Inc. pricing objective? Provide an explanation for your answer.Price and cost (dollars) 50 40 30 20 ATC 10 MC MR 10 20 30 40 50 Quantity (thousands of households) The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC operated under an average cost pricing rule, how many households in Oakland are served? 20,000 30,000 10,000 40,0005- a) There are 3 firms competing over quantities. The market share of firm 1 is 0.3 and its marginal cost is 1. If the price elasticity of demand is -3, what is the equilibrium price? b) If the share of the other two firms are 0.1 & 0.6 respectively calculate the Herfindahl index.
- The graph shows the demand and cost conditions facing a perfectly competitive industry. If the industry is taken over by a monopoly, what is the deadweight loss that results from the behavior of the monopoly? The deadweight loss that results from the behavior of the monopoly is $ per year. >>> Remember that the quantity given on the x-axis is in thousands of pizzas. (...) 36- 32- 28- 24-23 20- 16- 12- 8- 4- 0- Price and cost (dollars per pizza) 0 12 8 15 MR 8 4 12 16 20 24 Quantity (thousands of pizzas per year) --+ 26 MC D L 28 QCOURSE: MICROECONOMICS - MONOPOLY We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms.Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20) The demand in the market is: Q = 100 - 4pa) What is the individual supply of each firm? (answered)b) What is the supply of the whole industry? (answered)c) Obtain the market equilibrium (answered)In the case where a new firm intended to enter a monopolist's market:d) What kind of legitimate entry barriers can the firm face understanding the nature of the market it wishes to enter?e) What type of anticompetitive barriers could the firm already in the market present? NOTE: a), b) and c) for perfect competition have been already answered by a tutor; please answer d) and e) questionsSuppose the market for asparagus has the following (inverse) market demand schedule: p=88-0.2Q The industry has the following cost structure: MC = ATC = $4 The Amalgamated Asparagus Company is looking to spend factor resources in socially-wasteful legal battles and advertising campaigns to maintain a full monopoly in this market. Answer the following. a. For its monopoly, Amalgamated Asparagus is willing to pay resources worth up to $14070 Suppose that competitive rent-seeking pressures cause Amalgamated Asparagus to pay its maximum willingness-to-pay for monopoly rights. b. Social cost of this monopoly = $ 4410 Hint: Your answer to (a) should be whole number. Think about why.
- Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms _____(can or cannot) earn positive economic profits. In the long run, _____________________ can earn a positive economic profit. 2nd blank choices - neither monopolists nor competititve firms both monopolists and competitive firms monopolists, but not competitive firms competitive firms, but not monopolists True or False: The adjustment to long-run equilibrium occurs more quickly for competitive industries than for monopolists. _________________ (true or false)12. Mr. Farmer has been in the business of selling cheddar cheese for almost three years, and thus far has been able to control the volume of the product by varying the selling price. He is seeking to maximize its net profit. It has been concluded that the relationship between price and demand per month is approximately D = 2500 - 10p, where p is the price per unit in dollars. The fixed cost is $ 1,100 per month, and the variable cost is $15 per unit. What is the optimal no. of units that should be produced and sold per month? What is the maximum profit per month? What are the breakeven sales quantities (range of profitable demand) ?Give typing answer with explanation and conclusion The inefficiency (dead-weight loss) of a monopoly (as compared to perfect competition) indicates the amount by which Group of answer choices price exceeds marginal revenue at a particular output level. consumer welfare is increased by the monopolist. price exceeds marginal cost at a particular output level. marginal benefits exceed marginal cost for those units not produced by the monopolist but that would otherwise be produced in a competitive market. marginal costs exceed marginal benefits for those units not produced by the monopolist but that would otherwise be produced in a competitive market.