Answers to chapter 13

Answers to chapter 13 - Solutions to End-of-Chapter...

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Solutions to End-of-Chapter Exercises Chapter 13 [28] Section 13.1 [28.1]: Natural Monopoly 1.1 marginal revenue, marginal cost 1.2 left, smaller 1.3 above 1.4 more than one 1.5 arrow up, arrow down, arrow up 1.6 a. b. (price would be higher) 1.7 a. Average Costs: $13.00, $11.86, $11.00; price: $11.00 b. Average Costs: $17.00, $14.60, $13.00, $11.86; price: $17.00 1.8 Environmental protection costs were borne by electricity customers. Section 13.2 [28.2]: Antitrust Policy 2.1 competition, prices 2.2 lower, consumers 2.3 substitutes, prices 2.4 False 2.5 second 2.6 increased, two 2.7 a. Before merger: 70, $770, $350, $420 After merger: 85, $935, $425, $510 b. reduce, increase c. The merger leaves consumers with fewer suppliers of substitute goods. 2.8 a. X’s profit is increased by $12 million per year due to the acquisition. 210
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211 Chapter 13 b. X recovers the cost of acquiring Y in two years. 2.9
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This note was uploaded on 10/25/2009 for the course ECON 81509 taught by Professor X.song during the Spring '09 term at Mesa CC.

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Answers to chapter 13 - Solutions to End-of-Chapter...

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