Exam 15: Monopoly and Antitrust Policy

Figure 15-13 -Refer to Figure 15-13.From the monopoly graph above, identify the area representing the deadweight loss.Would the deadweight loss be larger if the demand curve was more elastic or less elastic?

Figure 15-9 Figure 15-9 shows the demand and cost curves for a monopolist. -Refer to Figure 15-9.What is the difference between the monopoly's price and perfectly competitive industry's price?

The United States Post Office

For which of the following firms is patent protection of vital importance?

Identify two ways by which the government controls monopolies?

The term "trust" in antitrust refers to a board of trustees that has collusive control over different companies.

If a restaurant was a natural monopoly, its

The only firms that do not have market power are

Table 15-3 Assume Table 15-3 gives the monthly demand and costs for subscriptions to basic cable for Comcast, a cable television monopoly in Philadelphia. -Refer to Table 15-3.If Comcast maximizes its profits how much profit will it earn?

Economic efficiency requires that a natural monopoly's price be set corresponding to the quantity where marginal revenue equals marginal cost.

A merger between U.S.Steel and General Motors would be an example of a

Figure 15-12 Figure 15-12 shows the cost and demand curves for a monopolist. -Refer to Figure 15-12.If this industry was organized as a perfectly competitive industry, the market output and market price would be

What is a public franchise? Are all public franchises natural monopolies?

Consider an industry that is made up of nine firms each with a market share (percent of sales)as follows: A.Firm A: 30% B.Firm B: 20% C.Firms C, D, and E: 10% each D.Firms F, G, H, and J: 5% each What is the value of the Herfindahl-Hirschman Index?

Figure 15-12 Figure 15-12 shows the cost and demand curves for a monopolist. -Refer to Figure 15-12.If the firm maximizes its profits, the deadweight loss to society due to this monopoly is equal to the area

Figure 15-17 Your college decides to offer a psychology course as a MOOC that can be taken by students anywhere in the world, whether they are actually enrolled in your college or not. The demand and cost situation for the MOOC is shown in the figure. -Refer to Figure 15-17.An economics professor argues: "I think the course should be priced so as to achieve economic efficiency." Which price should this faculty member favor?

Why does a monopoly cause a deadweight loss?

If a monopolist's marginal revenue is $35 per unit and its marginal cost is $25, then

If a theatre company expects $250,000 in ticket revenue from five performances and $288,000 in ticket revenue if it adds a sixth performance, the

A merger between the Ford Motor Company and General Motors would be an example of a