1) Why did the government agree to give AT&T a monopoly in telephone service? 2) Should...

1) Why did the government agree to give AT&T a monopoly in telephone service?

2) Should we have government-sanctioned monopolies? Do you think that we'd be better off if the government took over Hawaiian Electric? What do you think would happen to the price and quantity of electricity if they did?

Expert Solution

Rahul Sunny answered 1 year ago

Describe how government is involved in creating a monopoly. Why government create monopoly? Give an example.

1. Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy?...

1. Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy? Explain. 2. Define natural monopoly. What does the size of a market have to do with whether and industry is a natural monopoly or not? 3. Why is a monopolist’s marginal revenue less than the price of its good? Can marginal revenue ever be negative? Explain. 4. What is the profit-maximizing level of output and profit-maximizing price for a monopoly? Explain in terms of...

1)True/False: Monopoly reduces social welfare, so the government should always prohibit monopoly(explain) 2)Assume the demand for...

1)True/False: Monopoly reduces social welfare, so the government should always prohibit monopoly(explain) 2)Assume the demand for GMs new Hummer H2 is P = 100000 – 500Q, the marginal revenue is MR = 100000 – 1000Q, and the marginal cost is MC = 600Q. a) Please figure out the profit maximizing P and Q. b) What is the consumer surplus and what is the producer surplus?

Should the government regulate the natural monopoly? Explain.

What is a natural monopoly? Why is government justified in regulating a natural monopoly?

Give 5 Arguments that supports, why a government should be ran by a "Politician".

1. Should We Get Rid of the Electoral College? 2. Why did the founders create the...

1. Should We Get Rid of the Electoral College? 2. Why did the founders create the Electoral College system? Is it still a fair way of choosing a president? 3. So let’s say we amend the Constitution and finally get rid of the Electoral College, and go with “whoever gets the most votes wins.” How would this change presidential elections? What would happen if NO candidate received over 50% of the vote? 4. How would eliminating the Electoral College affect...

1. What is a monopoly? Why are monopolies outlawed? Explain fully. 2. Is WalMart a monopoly?...

1. What is a monopoly? Why are monopolies outlawed? Explain fully. 2. Is WalMart a monopoly? Explain. 3. There are federal laws which outlaw monopolies. What are they? When were they enacted? 4. If WalMart is a monopoly, why is the law not being applied? 5. The National Labor Relations Act of 1935 protected the rights of American workers to unionize without any interference from the employer. Discuss WalMart's approach to unions. Is it illegal? If so, why is the...

1. Define the terms monopoly and monopsony. Give examples of a monopoly, a natural monopoly, and...

1. Define the terms monopoly and monopsony. Give examples of a monopoly, a natural monopoly, and monopsony in professional sports.

Explain advantages and disadvantages of government regulations concerning monopoly based on 1. price controls, 2. government...

Explain advantages and disadvantages of government regulations concerning monopoly based on 1. price controls, 2. government ownerships, and 3. Anti-trust laws.

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