1a)The actual deadweight loss from monopoly in the U.S. may be greater than calc

Question

1a)The actual deadweight loss from monopoly in the U.S. may be greater than calculated estimates because some monopolies experience:

a. monopolies experience strong economies of scale

b.monopolist spend resources to secure and maintain their monopoly

c.monopolists often keep prices lower than their profit maximizing level in order to increase barriers to entry

d. monopolist markets are contestable

e.monopolist prices and profits are regulated by the government

1b)which of the following is not a condition for price discrimination

a. downward-slopping demand curve for products

b. the presence of strong diseconomies of scale

c. the presence of different group of buyers with different price elasticity of demand

d. the absence of a scope for reselling a product

e. the presence of some amount of market power with a producer

1c) firms with market power offer differentiated products in order to:

a. lower costs of production

b. increase profits

c. support their contractors in low-wage countries

d. fill up warehouses

e.increase social welfare

Explanation / Answer

Answer.)

1a.) b.monopolist spend resources to secure and maintain their monopoly

The resources used by a monopoly to retain its monopolistic position are resources that could have been used to provide the consumer with more and better goods and services.

1b.) b. the presence of strong diseconomies of scale

Price discrimination for a monopolist has nothing to do with economies of scale

1c.) b. increase profits

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