exam set 3

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Why would it be difficult for a company to offer a new alternative to Windows? Explain.

Windows' value will be higher since more people are using it.
Using the graph, a firm with that type of cost curve is best suited to be ___________.

a natural monopoly, since it faces economies of scale and can produce at a lower cost if done by one firm.
Which of the following best describes the relationship between price (P), marginal revenue (MR), and total revenue (TR) for a monopolist?

When MR is positive, TR is rising, and when MR is negative, TR is falling.
which of the following represents the monopolist's marginal revenue?

MR = a-2bQ.
Which of the following equations calculates economic profits for a monopoly?

Profits = (P-ATC)x Q
This type of pricing behavior is ____________.

third-degree price discrimination.
Compared to a monopoly that does not price discriminate, a monopolist who engages in perfect price discrimination will produce ___ output and have ___ deadweight loss

more, no
Which of the following is a likely argument used by DuPont to convince the Supreme Court that it did not violate the Sherman Act?

There are many close substitutes for cellophane such as aluminum foil and waxed paper, so DuPont did not have significant market power.
Which of the following arguments do you think Sirius and XM used to convince the DOJ and the FCC to allow the merger to proceed?

There are many close substitutes for satellite radio; therefore, Sirius-XM would not exercise market power.

Author

dwrght16

330764

Card Set

exam set 3

Description

final

Updated

2017-04-26T01:46:39Z

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