Monopolists are price makers why is this not the case

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Exploring Microeconomics
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Chapter 12 / Exercise 3
Exploring Microeconomics
Sexton
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71.Monopolists are price makers. Why is this not the case for firms in a competitive market?
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Exploring Microeconomics
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Chapter 12 / Exercise 3
Exploring Microeconomics
Sexton
Expert Verified
73.Even if one or more of their competitors goes out of business, othercompetitors will appear.74.Other sellers sell products that are similar if not identical.75.Their product only makes up a small portion of the market’s total product.76.The economy is generally better off when monopolies are broken up. Why is it hard for governments to do this?77.If a monopoly splits up, a new one will form from the resulting competitive firms.78.Competitive firms cause just as many problems for consumers.79.Monopolies produce more social welfare than competitive markets, so breaking them up would have large consequences.80.Monopolies often have laws to protect them.81.Sometimes keeping a monopoly intact is the best option.82.Monopolists have a lot of money to fend off antitrust lawsuits.83.Drag the words and/or phrases into the blanks to complete the following passage.84.Natural monopolies can develop due to –. In this case, breaking up a monopolist may lead to higher – due to inefficiency. Instead, governments can seek to remove the output inefficiency of a monopoly by capping prices at a level beneficial for – but not for –.85.Apply the appropriate label to each characteristic of a small-town veterinarian that tends to make him a monopolist.86.A small-town monopolist determines that lowering priceswill bring in more customers. Following the price drop, however, the firm discovers that even though the number of customers increased as hoped, the firm’s total profit is falling. What could have gone wrong?87.Which of the following are monopolists?88.a large company that has bought out all the competition89.sole owner of a barbecue stand at a festival90.a company with a product, like Vaseline, whose name is used generically91.a major car manufacturer, like General Motors
92.The graphs below show the price effect (pink) and output effect (pale green) when a certain monopolist changes the price that it charges. Based on the price effect and output effect, whichtwoof these price changes would be beneficial to the monopolist?93.What are the pros and cons of patents and copyrights for society?
99.Based on the following graph, how much should the monopolist charge for its product?100.101.-university-answers-complete-solutions
102.The lack of competition in a monopoly leads to a horizontal demand curve, as shown, for the market as a whole.103.104.Which of the following statements are true regarding tariffs?

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