The Internal Revenue Service is a good example of a government for-profit entity that is always trying to proactively maximize their MC=MR. True or False
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- Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q2. Government put $120 of specific tax on production. If the market is competitive what is the incidence of tax on consumer? If the market is monopolist what is the incidence of tax on consumer?Q2. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.Why is the assumption that a corporation or company with market power will charge the highest price they can a false one?
- A monopoly is forced to pay higher taxes to help their government lower their debt. Even with this tax, the monopoly still earns a positive economic profit. This new tax will cause: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a the monopoly's profits to fall slightly because most of the burden of the tax will fall on consumers. the monopoly's profits to fall significantly because most of the burden of the tax will fall on the monopoly and not consumers.. c the monopoly to increase its price by more than the amount of the new tax. d the monopoly to increase its price by less than the amount of the new tax. the monopoly to increase its price by an amount equal to the size of the new tax.2:03 D 19 ll 37% Marked out of 30 P Flag question Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a а. success. A Monopolist producing and supplying cooking gas to Mombasa city faces the demand b. function. = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Qʻ. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit. i. i. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm. ii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations. B I II II !!!. Suppose you are a manager of a County government project that is meant to provide rent-regulated housing units in low-income settlements. Using your knowledge of equilibrium, advice the Governor whether this policy will be a success. b. A Monopolist producing and supplying cooking gas to Mombasa city faces the demand function. Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2. i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit. ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm. iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.
- Define the Sherman Act and the Clayton Act and illustrate the differencesWe already know what the standard monopoly graph looks like. Academically speaking, what does a government run monopoly graph for Social Security and Medicare look like? Mulitple Choice a. In Microeconomics the government doesn't have a monopoly graph and they don't use the MC=MR formula b. The government uses the Price = AFC graph c. The government uses the cartel graph to represent government-run programs d. In Microeconomics the government uses the same monopoly graph as business and they use the MC=MR formulaDefine market power, and then discuss the rationale for government regulation of firms with market power.
- 24 $70 $60 i of $50 $40 $30 $20 -LRATC = LRMC $10 Demand = P MR $0 50 100 150 200 250 Output (Q) The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long- Run Equilibrium. If the market above were a monopoly, the monopolist would earn in Total Profit (Producer Surplus) in the Long-Run. Select one: а. zero b. $2,500 c. $1,000 d. $2,000Definition of Economic Theory of Government RegulationTo what extent would you consider the setting up of regulatory bodies an appropriate and effective solution to the principal-agent problem in markets where there is a natural monopoly?
