s Review View AaBbCcDdEe AaBbCcD AaBbCcDdE Emphasis Heading 1 Heading 2 15. Inef
ID: 1122260 • Letter: S
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s Review View AaBbCcDdEe AaBbCcD AaBbCcDdE Emphasis Heading 1 Heading 2 15. Inefficient output and price, few choices, and rent-seeking are all problems associated with: a. externalities. b. competitive markets. c. monopolies. d. scarcity. e. trade. 16.When resources are used to secure monopoly rights through the political process: a. firms are rent-seeking. b. consumers are profit-maximizing. c. total surplus is maximized d. the government is deregulating. e. prices decrease. 17.Three examples of solutions to the problems of a monopoly are: a. harnessing the benefits of competition, reducing trade barriers, and regulating markets. b. harnessing the benefits of monopolies, reducing trade barriers, and regulating markets. c. harnessing the benefits of competition, increasing trade barriers, and regulating markets. d. harnessing the benefits of monopolies, increasing trade barriers, and regulating markets. e. harnessing the benefits of competition, increasing trade barriers, and deregulating markets. 18.If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolist should: a. increase production and lower the price to maximize profits. b. decrease production and increase the price to maximize profits. c. continue producing at the current price to maximize profits. d. increase production and increase the price to maximize profits. e. decrease production and decrease the price to maximize profits. II. Shorts-Answer Questions (2 pts) lulee has estimated the demand and marginal revenue for her product. They are P 100-2Q (quantity) and MR = 100-4Q, respectively. She also experiences constant marginal cost of $16 a. Does Julee have any market power? How can you tell? b. What is Jules's profit-maximizing quantity?Explanation / Answer
15. c monopoly
In monopoly, there is a single seller with market power, thus the price is high and choice is low with inefficiency.
16> a
Rent-seeking is the use of the resources of a company, an organization or an individual to obtain economic gain from others without reciprocating any benefits to society through wealth creation
17> a
By reducing trade-barrier or regulating the market, the monopoly problem can be solved.
18> a
Increasing production and lowering the price will make the marginal revenue to go down to 30 to maximize profit.
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