Questions from General Economics

Q: Suppose you have been tasked with regulating a single monopoly firm that

Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter h...

Q: True or False. The term economic investment includes purchasing stocks,

True or False. The term economic investment includes purchasing stocks, bonds, and real estate.

Q: How do the entry and exit of firms in a purely competitive

How do the entry and exit of firms in a purely competitive industry affect resource flows and long-run profits and losses?

Q: “No firm is completely sheltered from rivals; all firms compete

“No firm is completely sheltered from rivals; all firms compete for consumer dollars. If that is so, then pure monopoly does not exist.” Do you agree? Explain. How might you use Chapter 6’s concept of...

Q: Discuss the major barriers to entry into an industry. Explain how

Discuss the major barriers to entry into an industry. Explain how each barrier can foster either monopoly or oligopoly. Which barriers, if any, do you feel give rise to monopoly that is socially justi...

Q: How does the demand curve faced by a purely monopolistic seller differ

How does the demand curve faced by a purely monopolistic seller differ from that confronting a purely competitive firm? Why does it differ? Of what significance is the difference? Why is the pure mono...

Q: Assume that a pure monopolist and a purely competitive firm have the

Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profits, (d) allocation of resources, and (e) imp...

Q: Critically evaluate and explain each statement: a. Because they

Critically evaluate and explain each statement: a. Because they can control product price, monopolists are always assured of profitable production by simply charging the highest price consumers will...

Q: Use the accompanying figure to answer the follow questions. Assume that

Use the accompanying figure to answer the follow questions. Assume that the economy initially is operating at price level 120 and real output level $870. This output level is the economyâ€&...

Q: Suppose that the equation for a particular short-run AS curve

Suppose that the equation for a particular short-run AS curve is P = 20 + .5Q, where P is the price level and Q is real output in dollar terms. What is Q if the price level is 120? Suppose that the Q...