Questions from General Economics

Q: Explain why a monopolist would never produce in the inelastic range of

Explain why a monopolist would never produce in the inelastic range of the demand curve.

Q: Suppose the demand and cost curves for a monopolist are as shown

Suppose the demand and cost curves for a monopolist are as shown in Exhibit 10. Explain what price the monopolist should charge and how much output it should produce.

Q: Suppose the candy bar industry approximates a perfectly competitive industry. Suppose

Suppose the candy bar industry approximates a perfectly competitive industry. Suppose also that a single firm buys all the assets of the candy bar firms and establishes a monopoly. Contrast these two...

Q: Why is the demand curve facing a monopolist downward sloping while the

Why is the demand curve facing a monopolist downward sloping while the demand curve facing a perfectly competitive firm is horizontal?

Q: Which of the following are public goods? a. Air

Which of the following are public goods? a. Air bags b. Pencils c. Cycle helmets d. City streetlights e. Contact lenses

Q: Explain why you agree or disagree with the following statements:

Explain why you agree or disagree with the following statements: a. “All monopolies are created by the government.” b.“The monopolist charges the highest possible price.” c. “The monopolist never take...

Q: Use the following demand schedule for a monopolist. Calculate total revenue

Use the following demand schedule for a monopolist. Calculate total revenue and marginal revenue. For each price, indicate whether demand is elastic, unit elastic, or inelastic. Using the data from th...

Q: For many years the milk industry faced an important question: What

For many years the milk industry faced an important question: What does the federal government plan to do about its dairy price support program, which has helped boost farmers’ incom...

Q: In their book Free to Choose, published in 1980, economists

In their book Free to Choose, published in 1980, economists Milton Friedman and his wife Rose Friedman proposed a voucher plan for schools. The objective of their proposal was to retain government fin...

Q: Tobacco use is one of the chief preventable causes of death in

Tobacco use is one of the chief preventable causes of death in the world. Since 1964, health warnings have been mandated in the United States on tobacco advertising, including billboards and printed a...