Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The diagram on the right shows a firm ( industry ) that earns a normal return to capital if organized competitively. Price in the market
The diagram on the right shows a firm industry that earns a normal return to capital if organized competitively. Price in the market place is under competition. We assume at first that marginal cost is fixed at $ per unit of output and that there are no economies or diseconomies of scale.
Total revenue for the competitive firm, assuming free entry, is $Enter your response as an integer.
Total cost to the competitive firm, assuming free entry, is $Enter your response as an integer.
Consumer surplus under competition is : Enter your response as an integer.
Now assume that you bought all the firms in this industry, combining them into a singlefirm monopoly protected from entry by a patent.
The profitmaximizing price, for a monopoly is $Enter your response as an integer.
Total revenue from the monopoly is Enter your response as an integer.
Total cost for a monopoly is $Enter your response as an integer.
Total profit for a monopoly is Enter your response as an integer.
Consumer surplus for a monopoly is $ Enter your response as an integer.
The deadweight loss for a monopoly is $ Enter your response as an integer.
Which of the following expresses the correct set of relationships?
A;;;
;
What potential remedies a monopoly are available?
Breaking the monopoly.
Reducing barriers entry, imposing price ceilings, and imposing sanctions those who violate antitrust laws.
Obtaining a consent decree stop the anticompetitive behavior.
All the above.
None the above.;
;
;
;
What potential remedies a monopoly are available?
Breaking the monopoly.
Reducing barriers entry, imposing price ceilings, and imposing sanctions those who violate antitrust laws.
Obtaining a consent decree stop the anticompetitive behavior.
All the above.
None the above.
Please double check my answers using the exact information given please.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started