If the Internet lowers the transaction costs producers incur when they sell their product to the monopoly retailer, the incentive to vertically integrate these two sectors O A. does not change. B. increases. C. decreases. D. might increase, decrease, or not change.
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- Why do Economists prefer competition to monopoly?a. Competition increases social welfareb. Economists place a higher value of gains to the consumer than on gains toproducersc. Economists exclude profits when measuring social welfare.d. Economists place a higher value on gains to producers than on gains toconsumers.A market structure that is “monopoly” is NOT ... Group of answer choices a. production efficient b. allocation efficient c. neither allocation nor production efficienta. 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?
- The monopoly firm pictured above will produce an output level of ______ units. A. 30 B. 40 C. 50 D. 60 E. 70C. Explain how the following cause market failure:(i) under provision of merit goods(ii) monopoly. Diagrams should be included in your explanations.a. The perfectly competitive firm exhibits resource allocative efficiency (P = MC), but the single-price monopolist does not. What is the reason for this difference?b. Explain three reasons why monopolies arise. c. Why is the marginal revenue of a perfectly competitive firm equal to the market price? d. Would a perfectly competitive firm produce if price were less than theminimum level of average variable cost? Why?
- 1. Draw a graph of a typical natural monopoly with declining costs. a. Label monopoly price and quantity. Identify the area of deadweight loss when the monopoly chooses the profit-maximizing level of output. b. Label marginal cost price and quantity. i. How will the area of deadweight loss be impacted with marginal cost pricing? ii. What are the drawbacks to this approach? c. Label fair return price and quantity. What are the pros and cons of fair return pricing? d. What is incentive regulation? What are the positive and negative impacts of this strategy?A natural monopoly occurs when A. one firm can supply the entire market at a lower price per unit than two or more firms can. B. a few firms collude to act as a single firm. C. one firm owns all the vital resources needed to produce a particular good. D. one firm captures all the consumer surplus.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?
- There is a market with monopoly conditions with Q= 100-P (demand) and MC-AC-20. The monopoly price and quantity levels are Pm= 60 and Qm-40, meanwhile the equilibrium of competition is Pe=20 and Qe=80. Calculate: a. Draw the condition curve and show the CS, PS and regions DWL? b. Value of Consumer Surplus (CS) and Producen Surplus (PS) at the time of competition? c. Value of Consumer Surplus (CS), Producen Surplus (PS) and Deadweight Loss (DWL) at the time of monopoly?The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit 10 MC Profit 7 ATC 4. 3 2 1 MR 0 4. 1 3 7 Quantity (millions of units) 10 LO et LO Price (S per unit)Each of these are possible benefits from a monopoly EXCEPT A. the ability to minimize deadweight loss from production. B. potential economies of scale from production. C. more jobs in research and development. D. new innovations in technology and in the creative arts.