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Economics Homework Nine Answers - Student Three (view source)
Revision as of 21:00, February 28, 2010
, 21:00, February 28, 2010category
6. Monopoly
6. Monopoly
:Excellent!
'''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."'''
'''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."'''
(3) Monopoly
(3) Monopoly
:Close, but I think (2) is perfect competition. (Minus 1)
'''4. List how monopolies can be established.'''
'''4. List how monopolies can be established.'''
5. Government grants of monopoly such as patents and copyrights.
5. Government grants of monopoly such as patents and copyrights.
:Superb.
'''5. What prevents a monopoly from increasing its prices without limitation?'''
'''5. What prevents a monopoly from increasing its prices without limitation?'''
People will not pay obscenely high prices, even if it's the only supplier. A monopoly must still sell when MR=MC.
People will not pay obscenely high prices, even if it's the only supplier. A monopoly must still sell when MR=MC.
:Right.
:Well done! 39/40.--[[User:Aschlafly|Andy Schlafly]] 20:49, 14 November 2009 (EST)
[[Category:Economics Homework Nine Answers]]