You walk into a store to buy some AAA batteries for your transistor radio, and the store offers you two choices. Duracell and Eveready. Both charge the same price $3.99 for a package of four. Is this situation a sign of dual monopoly or perfect competition? What criteria would you use to determine the difference?
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- Compare the market structure of monopoly to perfect competition.how do they differWhich of the 4 strategic barriers do you think is more effective in dealing with a new entrant if you're the monopoly? Limit pricing Predatory pricing Excess capacity Heavy advertisingThe demand curve facing a firm in a monopolistically competitive market is more elastic than one facing a pure monopoly. True or False? Why?
- How do you find the profit maximizing PRICE (not level of output) on a graph for a monopoly with demand, marginal revenue, marginal cost, and average total cost curves. Group of answer choices Find the minimum point on the ATC curve and go straight over to the price axis. Find the point where MR = MC and go straight over to the price axis. Find the point where MR = MC, go straight up until you hit the demand curve, and then go straight over to the price axis. Find the point where demand hits marginal cost and go straight over to the price axis.Microsoft was once accused of being a monopoly - they were one of many computer companies who sold internet browsers. True or Falsee) Describe how monopoly is different from perfect competition in terms of characteristics,optimal conditions, and market and firm conditions.
- Price and cost (dollars per hamburger) 5.00 4.50 4.00 MC 3.50 3.00 2.50 2.00 1.50 1.00 0.50 MR 10 20 30 40 50 Quantity (hamburgers per hour) Suppose the Busy Bee Cafe is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What price will the Busy Bee charge to maximize its profit? A. $1.00 for a hamburger OB. $3.00 for a hamburger OC. $5.00 for a hamburger OD. $2.00 for a hamburger O E. $4.00 for a hamburgerJackie, Jerry, and Johnny run the only saloon in town. Jackie wants to sell as many drinks as possible without losing money. Jerry wants the saloon to bring in as much revenue as possible. Johnny wants to make the largest possible profits. Examine the monopoly diagram below that contains the demand, marginal revenue, and cost curves of the saloon. Determine the price-quantity combinationName a firm of business that is selling a good or item that is not so unique. However, in the local market, it's able to enjoy monopoly power. Although it's a monopoly, you don't see other firms entering the market. Name one possible entry barrier that could be keeping other firms from entering and competing with the suggested business.
- Lagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss PRICE (Dolan per bottle) 400 2.50 2.00 1.50 1.00 050 0 MC 0 ATC AR D 35 QUANTITY(Tands of botes of beer) = Monopoly Outcome Profe LossLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (0) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE(Dollar per bottle) 4.00 3.50 2:50 2:00 1.50 0 MO 05 MR ATC 2.5 QUANTITY (Thousands of bottles of beer) 35 D Monopoly Outcome Profe LossLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per bottle) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0 MC 0 0.5 1.5 ATC MR 1.0 2.5 3.0 QUANTITY (Thousands of bottles of beer) D 2.0 3.5 4.0 Monopoly Outcome Profit Loss image 1 Suppose…