The perfect competitor can produce as much as it wants or as little as it wants with no effects on market price whatsoever. True False Oligopolies and monopolies attempt reduce output and raise price, thereby incurring overcapacity and waste to society. True False Redistribution of income from wealthier individuals to lower-income individuals by government in the form of higher taxes and progressive tax systems actually tends to lower prosperity because it weakens the link between productive activity and the reward derived from it, encourages resources to flow into wasteful rent-seeking activities, as well as higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities. True False Decreasing the percentage tariff price on an imported good will result in greater market share for the foreign producer in the domestic country. True False

The perfect competitor can produce as much as it wants or as little as it wants with no effects on market price whatsoever. True False Oligopolies and monopolies attempt reduce output and raise price, thereby incurring overcapacity and waste to society. True False Redistribution of income from wealthier individuals to lower-income individuals by government in the form of higher taxes and progressive tax systems actually tends to lower prosperity because it weakens the link between productive activity and the reward derived from it, encourages resources to flow into wasteful rent-seeking activities, as well as higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities. True False Decreasing the percentage tariff price on an imported good will result in greater market share for the foreign producer in the domestic country. True False

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter9: Monopoly

Section: Chapter Questions

Problem 1QFR

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A monopolist, unlike a competitive firm, has some market power. It can raise its price, within limits, without the quantity demanded falling to zero. The main way it retains its market power is through barriers to entry-that is, other companies cannot enter the market to create competition in that particular industry. Complete the following table by indicating which barrier to entry appropriately explains why a monopoly exists in each scenario. Barriers to Entry Exclusive Ownership of a Key Government- Created Economies Scenario Resource Monopolies Scale In an imaginary country, there is only one federally licensed lottery agency in any state; that is, it is impossible for any private firm to start up a competitive lottery without a government license to do so. You can find the mines for tanzanite (a blue-purple gemstone) only in Tanzania, but they are owned by the local government. Given that no one is allowed into the mines without government permission, the market structure for…
Any activity designed to transfer income or wealth to a particular individual or firm at society's expense is called patent protection. X-inefficiency. price discrimination. rent-seeking.
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The Broadway show Hamilton is coming to perform for one night. There are two types of consumers interested in the show- current students and rich alumni. The demand curve for the student market is Q= 300-0.4P with marginal revenue MR= 750-5Q. The demand curve for the alumni market segment is Q=600-0.1P with marginal revenue MR=6000-20Q. If the two types of consumers are in the market, the MR=1800-4Q. The cost function is C(Q)=200Q and the marginal cost of serving either customer is MC=200. 2. How much total consumer surplus is generated?
As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 50 - 1Q, and your costs are C(Q) = 18Q.a. Determine the monopoly price and output.Monopoly price: $___ Monopoly output units____b. Determine the socially efficient price and output.Socially efficient price: $____ Socially efficient output Units___c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level?$____
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