Vertical relationships can increase profits through a. preventing firms from evading regulation b. eliminating a double-markup problem c. making the incentives of manufacturers and retailers unaligned d. preventing price discrimination
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Vertical relationships can increase profits through
a. preventing firms from evading regulation
b. eliminating a double-markup problem
c. making the incentives of manufacturers and retailers unaligned
d. preventing
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- Match each of the terms to their description: Shutdown Point A. something that keeps new firms from joining a market B. legal protection for inventions C. legal protection for books and music D. a firm that operates as a monopolist Price maker Barriers to Entry Copyright E. revenues do not cover its average variable costs PatentThe accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this figure to answer the questions that follow. a. What price will an unregulated monopoly charge? b. What quantity will an unregulated monopoly produce? c. How many units will a monopoly produce when the regulated price is $10 per unit? d. Determine the quantity demanded and the amount produced at the regulated price of $10 per unit. Is there a shortage or a surplus? e. Determine the deadweight loss to society (if any) when the regulated price is $10 per unit. f. Determine the regulated price that maximizes social welfare. Is there a shortage or a surplus at this price?Are all markets regulated or deregulated?
- T or F Monopolies decrease consumer surpluses in the market. Why?The accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this figure to answer the questions that follow. a. What price will an unregulated monopoly charge?$ b. What quantity will an unregulated monopoly produce?unitsc. How many units will a monopoly produce when the regulated price is $10 per unit?unitsd. Determine the quantity demanded and the amount produced at the regulated price of $10 per unit. Is there a shortage or a surplus?Quantity demanded: units Amount produced: unitsThere is: (Click to select) a shortage neither a shortage nor a surplus a surplus .e. Determine the deadweight loss to society (if any) when the regulated price is $10 per unit.$ f. Determine the regulated price that maximizes social welfare. Is there a shortage or a surplus at this price?$ There is (Click to select) neither a surplus nor a shortage a surplus a shortage at this price.Which of the following can create monopolies? a. Economies of scale b. Scarce resources c. Agressive business tactics d. Government intervention
- Why might governments seek to regulate monopolies? A. Most monopolies are created through corrupt practices B. Most monopolies are highly efficient at allocating resources, which limits competition C. Monopolies can lead to socialism D. Most monopolies allocate resources inefficientlyare monopolies good or bad for consumers?Price The graph below depicts the market demand curve faced by a hypothetical cartel operating in the US. Use the graph to highlight the area that represents the profits earned by the cartel. 100 90 80 70 60 50 40 30 20 10 0 0 D B Profit C A Marginal cost average cost Market demand Marginal revenue 1000 2000 3000 4000 5000 6000 7000 8000 900010000 Quantity If the US government decides to break up the cartel. Which of the following pieces of legislation could the cartel be prosecuted under? The Sherman Antitrust Act The First Amendment The Dodd Frank Act The Glass Stegall Act
- 1. What is the advantage and disadvantage of monopolies which exploit the consumer can exist. 2. What is the advantage and disadvantage of the government intervenes to try to reduce market failure 3. What is the advantage and disadvantage of no one is responsible for trying to eliminate unemployment 4. What is the advantage and disadvantage of Consumers have the greatest variety of goods possible.Name some of the challenges marketers encounter when developing advertising and promotional campaigns. How does the type of product affect the promotional strategies?how monopolists in the Philippines are being regulated by the government.