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- Why does a monopoly arise? O because of diseconomies of scale because entry to an industry is blocked because of elastic demand because firms want to maximize profitsOver a recent family dinner, your Aunt Trudy expresses her disdain for price discriminating monopoly businesses, to which you, having taken some economics reply, "A perfect price discriminating monopoly may convert all of the consumer surplus to monopoly profit, but at least it produces O A. more output than a competitive industry would produce. OB. the same output that a competitive industry would produce. C. at the minimum of its average total cost (ATC) curve. D. where its marginal cost (MC) curve is still declining.The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 a.This cost structure is an example of natural monopoly. b.For the first 300 units of output, this firm has diseconomies of scale. c.For output levels between 300 and 400, the firm has constant returns to scale. d.For output levels greater than 400, the firm has economies of scale. which is the answer?
- I am learning about pure competition in short and long run and pure monopoly in intro to microeconomics. How would a pizzeria in a densely populated area with 20 to 50 competitors thrive in a pure short competition market compared to a pure long competition market? As well as in a pure monopoly market.The maintenance of a monopoly requires that a firm prevent the entry of potential competitors. Inaddition to acquiring a patent on a product, what strategies might a firm use to prevent entry? Explain and show graph.QUESTION 6 Economies of scale are achieved by producing larger quantities Oproducing smaller quantities producing in a country with a larger economy. Obecoming a monopoly
- Which of the following is true of a natural monopoly? * It experiences diseconomies of scale. ATC is lower if there is a single firm in the market. It occurs in a market that relies on natural resources for its production. There are decreasing returns to scale in the industry. O The government must provide the good or service to achieve efficiency.When a well-known musician applies copyright ownership of his musical creations, he creates a monopoly by constraining unit production costs. demand for the product. O entry into the market. the number of inventorsPrice (Dollars per Garment) 7 D E 5 АС-МC Demand Marginal Revenue 20 Garments cleaned per year (millions) The long run average and marginal cost of dry-cleaning services is $5, as shown in the graph. Given the demand curve and the marginal revenue curve shown in the graph, which of the following is true? Select one: O . If the industry were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $7 per garment. Ob. If the industry were perfectly competitive, 10 million garments would be cleaned each year. If the market were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $5 per garment and monopoly economic profit would be zero. O d. If the industry were perfectly competitive then the long-run equilibrium price of dry-cleaning services would be $7 per garment.
- A natural monopoly refers to a monopoly that is defended from direct competition by a. Control over a vital input b. A government franchise c. A patent or copyright d. Economies of scale over a broad range of outputMicrosoft Windows 8 to Go on Sale in October. Microsoft announced that its Windows 8 operating system will be released in October 2012, three years after Windows 7 went public. Windows 8 will be available in 109 languages across 231 markets worldwide a. Is Microsoft a natural monopoly or a legal monopoly? b. Does Microsoft price discriminate or do the different prices of Windows reflect cost differences? c. Sketch a demand curve for Windows, Microsoft’s marginal cost curve, and the distribution of the total surplus between consumers and Microsoft.What is the effect of a monopoly? reduced competition O increased competition O reduced advertising