c Industry Q is at the low end of being considered moderately concentrated

# C industry q is at the low end of being considered

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c.Industry Q is at the low end of being considered moderately concentrated. Industry Z is highlyconcentrated. Market power is much greater in industry Z.Diff: 3Page Ref: 506/506Topic: Characteristics of MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affectmonopoliesAACSB: Analytic Skills44
Figure 15-10148)Refer to Figure 15-10to answer the following questions.a.What quantity will this monopoly produce and what price will it charge?b.Suppose the monopoly is regulated. If the regulatory agency wants to achieve economic efficiency, whatprice should it require the monopoly to charge?c.To achieve economic efficiency, what quantity will the regulated monopoly produce?d.Will the regulated monopoly make a profit if it charges the price that will achieve economic efficiency?e.Suppose the government decides to regulate the monopoly by imposing a price ceiling of \$35. Whatquantity will the monopoly produce and what price will the monopoly charge?f.With the price ceiling of \$35, what profit will the monopoly earn?Answer: a.Quantity=835 units and Price=\$59.b.To achieve economic efficiency, the price=\$20.c.The quantity produced=2,204 units.d.No, the regulated monopoly will make a loss.e.If the ceiling price is set at \$35, the monopoly will produce a quantity of 1,740 units and charge theceiling price of \$35.f.The monopoly will break even.Diff: 2Page Ref: 508/508Topic: Natural MonopolyLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how public policies affectmonopoliesAACSB: Analytic Skills45
ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.1) Price discriminationA) is the practice of charging different prices to different customers based on a sellerʹs personalpreferences and prejudices.