. Explain how the following cause market failure: (i) under provision of merit goods (ii) monopoly . Diagrams should be included in your explanations.
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Q: 2. a. State the assumptions of monopoly.
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C. Explain how the following cause market failure:
(i) under provision of merit goods
(ii)
. Diagrams should be included in your explanations.
Step by step
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- (a) What is meant by consumer surplus and producer surplus? Using a diagram show that there is a deadweight loss to society from monopoly in terms of total surplus. (b) In what ways is a monopolistically competitive firm likely to be less efficient than one under perfect competition?(a) If you are the owner of the only bookstore in a small town, do you have a monopoly? Explain. (b) Draw graph and explain the inefficiency of a monopoly firm such as public sector provision of electricity.Question 4 Explain Microeconomic electricity theory?. Differentiate between monopoly and With a diagram, explain the game between consumers and producers in the electricity
- a. Most developing countries have been struggling to achieve economic growth and economic development. As a policy maker explain what advice you would give to these countries to achieve both economic growth and economic development. b. Suppose the widget industry is perfectly competitive and faces constant returns to scale. A monopoly purchases all widget producers in the market. List three ways in which the market outcome under monopoly will differ from the market outcome under perfect competition.Price EQ A Market for Product X B S Quantity If the market for Product X is a monopoly, how might the business that produces Product X raise the equilibrium price of the product? D The business can increase production of product X, because doing so would shift the supply curve left and create a surplus. The business can increase production of product X, because doing so would shift the supply curve right and createQuestion 4 i. ii. iii. A monopoly can be recognized by certain characteristics that set it aside from the other market structures. Explain why a monopoly firm is a price-maker in microeconomics. The opponent of monopoly argued that the monopoly power will result to a social cost. Explain why. A perfectly competitive market has the opposite characteristics or conditions from the monopoly market, describe THREE (3) characteristics or conditions of the perfectly Competitive market structure.
- A market structure that is “monopoly” is NOT ... Group of answer choices a. production efficient b. allocation efficient c. neither allocation nor production efficienta. Coca-Cola cuts its price below that of Pepsi-Cola to increase profit. b. A Single firm, protected by a barrier to entry, produces a personal service that has no close substitutes c. barrier to entry exists, but the good has some close substitutes d. A museum offers discounts to students and seniors e. A firm can sell any quantity it chooses at the going price f. A firm experiences economics of scale even when it produces the quantity that meets the entire market demand. 1. Which of the six cases are monopolies or might give rise to monopoly? 2. which are legal monopolies and which are natural monopolies? can any of them price discriminate? if so, why?Question 2 (a) what is price discrimination.Give examples (b) Determine the conditions for price discrimination to be effective.
- a. Marginal Cost (MC) and Marginal Revenue (MR)? b. The point of equilibrium (price and quantity) at the time of competition? c. The point of equilibrium (price and quantity) at the time of monopoly? d. Draw the condition curve and show the CS, PS and DWL regions? e. Value of Consumer Surplus (CS) and Producen Surplus (PS) at the time of competition? f. Nilai Consumer Surplus (CS), Producen Surplus (PS) dan Deadweight Loss (DWL) at the time of monopoly?Adam buys luxury wristwatches in Greece for $70.00 and sells them in Germany for $120.00. This act is known as? A. Bundling B. Arbitrage C. Market separation D. Tyinga. Complete the table below picture attached. b. What conditions should exist for price discrimination