1. Discuss why having a monopoly may hurt social welfare.
Discuss about what Anti-Trustdoes to regulate the monopoly.
2. Suppose there are two groups of consumers, students or
adults. The demand function forstudents isQs= 6?p, the demand for
the adults isQa= 12?p. Suppose the marginal costis 2.
(a) What is the monopolistic prices for both markets? What is
the total producer’s surplus?
(b) If the monopoly can only charge a single price, what would
be the optimal price? Whatis the...
1. Why are entry barriers necessary for antitrust policy
concerns about monopolization, pricefixing, and mergers?
2. Suppose that production of widgets requires capital and
labor. The production function is constant returns to scale and
capital investment is sunk. There are no other barriers to entry.
Is the investment in sunk capital a barrier to entry? Explain. What
will the market equilibrium be if there are many possible
entrants?
3.The decision of two banks to form a network of compatible ATMs...
Anti-trust policy may be different between a market for network
goods and non-network, or traditional, anti-trust policy. What
tension causes this?
A.Network goods are often produced by a monopoly or an
oligopoly, but the low level of competition in the market in the
market is balanced by the high level of competition for the
market.
B.Network goods are often produced by a monopoly, but that is
less important than the fact that the monopoly gained that position
by producing the...
Problem 5:
Suppose that a market could be either a monopoly or a
competitive market. Suppose that in
either case the demand curve can be written as ?d =
100 − 2?. Suppose further that the
marginal cost of production is the same in either case. This
means that the supply curve in the
competitive market is the same as the marginal cost curve for
the monopoly. So the supply curve
is ?s = −20 + ? and, rearranging the...
Can you write for a summary about "France Critical Incident"
"Critical Incident" about France negotiation and how
they do the business meeting?
Thank you so much
Discuss policy towards climate change. What is problem/why would
the private market not work. What might Quantity regulation look
like. How about Price regulation. Describe the pros and cons of
these options. How might you choose between them and what type of
policy/regulation would you like to see with regard to climate
change. Explain.