What is "the welfare triangle" method of measuring the welfare costs of monopolies and tariffs? Why...

What is "the welfare triangle" method of measuring the welfare costs of monopolies and tariffs? Why does Tullock say that this method underestimates the welfare costs of tariffs and monopolies (and what are the costs that are not measured in the welfare triangle method)?

Expert Solution

Rahul Sunny answered 1 year ago

Why monopolies arise and what governments can do in face of monopolies?

tariffs and import quotas usually reduce general economic welfare

Why do think the most common method of measuring an asset’s life is by years? What...

Why do think the most common method of measuring an asset’s life is by years? What are the advantages/disadvantages of using straight-line, units of production or double-declining balance method? These interactions count as class participation — active and meaningful participation may be counted as extra credit. The prompts are part of your graded work — you are required to post answers to 5 chapter prompts over the course of this class

1. A surveyor is measuring a field that is in the shape of a triangle. She...

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Why monopolies arise and what governments can do in face of monopolies? Explain briefly how the...

Why monopolies arise and what governments can do in face of monopolies? Explain briefly how the price floor works in a market if the government applies it. Use a specific real life example to argue for the application of it.

I agree with the statement that monopolies are bad for social welfare compared to perfect competition....

I agree with the statement that monopolies are bad for social welfare compared to perfect competition. A monopoly is only one firm and they are "price-setters", meaning they get to determine the price of the product/service because there is no other competition. With that being said a monopoly may set the price of their product/service very high to earn more profit, but only those with a higher income would be able to afford the product/service. Everyone else would not have...

Are monopolies a good thing? Why or why not?

A government can reduce the welfare inefficiencies caused by a monopoly by imposing tariffs. setting the...

A government can reduce the welfare inefficiencies caused by a monopoly by imposing tariffs. setting the price to the Average Total Cost. taxing the monopoly. All of the above.

Why are monopolies undesirable for an economy?

What are the main objectives or goals of monopolies? But what is the downside of monopolies...

What are the main objectives or goals of monopolies? But what is the downside of monopolies in a capitalist free-market economy? Monopolies want to have sole control of production, distribution, and supply of a good or service. Despite monopolies’ massive expansion and dominion of one market, it creates a market failure in competition. In the lack of competition among many businesses, monopolies are sacrificing quality in products. Monopolies want to have sole control of production, distribution, and demand of a...

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