Economics Homework Nine Answers - Student One - Revision history

Taj at 20:56, February 28, 2010

2010-02-28T20:56:33Z

Aschlafly: perfect!

2009-11-15T00:12:03Z

perfect!

DeborahB. at 15:13, November 11, 2009

2009-11-11T15:13:19Z

DeborahB. at 15:13, November 11, 2009

2009-11-11T15:13:05Z

DeborahB. at 15:11, November 11, 2009

2009-11-11T15:11:47Z

DeborahB.: Created page with ''''2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).''' 1) ...'

2009-11-11T15:11:12Z

Created page with ''''2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).''' 1) ...'

New page

'''2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).'''

1) Perfect Competition (MC=MR at a lower point P, where P=ATC)

2) Perfectly Contestable Markets

3) Monopolistic Competition

4) Oligopoly

5) Cartel

6) Monopoly (MC=MR is how the price is determined

'''3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need." '''

1) Monopolistic Competition

2) Perfect Competition

3) Monopoly

'''4. List how monopolies can be established.''' Monopolies can be established several different ways.

1) The licensing of professionals creates a barrier to entry.

2) Control of a valuable resource can also create a monopoly.

3) Economies of scale can create a monopoly by rewarding the biggest company with the lowest average cost.

4) Government grants of monopoly such as patents and copyrights.

'''5. What prevents a monopoly from increasing its prices without limitation?''' The Law of Demand: demand will decrease as the price increases simply because people will buy less as the price increases. People have limits on what they will spend.

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	:Perfect! 40/40. Well done!--[[User:Aschlafly\|Andy Schlafly]] 19:12, 14 November 2009 (EST)		:Perfect! 40/40. Well done!--[[User:Aschlafly\|Andy Schlafly]] 19:12, 14 November 2009 (EST)
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	5) Cartel		5) Cartel

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		+	'''DeborahB.'''
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	'''2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).'''		'''2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).'''

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 ) Monopoly (MC=MR is how the price is determined)
 '''3. Explain which specific type of industry (e.g., oligopoly or something else) each of these quotes probably refers to: (1) "She's the finest hair stylist in town; no one has her special style!", (2) "Crazy Eddie ... his low prices are INSANE!", (3) "Don't like his prices? He's the only one in town selling what you need." '''
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 ) Monopoly
 '''4. List how monopolies can be established.''' Monopolies can be established several different ways.
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 ) Government grants of monopoly such as patents and copyrights.
 '''5. What prevents a monopoly from increasing its prices without limitation?''' The Law of Demand: demand will decrease as the price increases simply because people will buy less as the price increases. People have limits on what they will spend.

@@ Line 28: / Line 28: @@
 '''4. List how monopolies can be established.''' Monopolies can be established several different ways.
-) The licensing of professionals creates a barrier to entry.
+) Government sometimes creates monopolies by operation of law
-) Control of a valuable resource can also create a monopoly.
+) The licensing of professionals creates a barrier to entry.
-) Economies of scale can create a monopoly by rewarding the biggest company with the lowest average cost.
+) Control of a valuable resource can also create a monopoly.
-) Government grants of monopoly such as patents and copyrights.
+) Economies of scale can create a monopoly by rewarding the biggest company with the lowest average cost.
 '''5. What prevents a monopoly from increasing its prices without limitation?''' The Law of Demand: demand will decrease as the price increases simply because people will buy less as the price increases. People have limits on what they will spend.