As economists since Adam Smith have recognized, minimizing production cost may not minimize price, since monopolies use their market power to markup price above competitive levels and earn monopoly rents. This historically engendered one of two policy responses. Government ownership in natural monopoly ...
The government uses a variety of tools to influence monopoly production. Subsidies can be used to increase monopoly output, as can the use of price discrimination. More used is the government's power to regulate production directly or to break up monopolies into competitive firms. The threat of...
1 : exclusive control of a particular market that is marked by the power to control prices and exclude competition and that especially is developed willfully rather than as the result of superior products or skill see also antitrust, Sherman Antitrust Act 2 : one that has a monopoly More...
What is the explanation why a firm in monopolistic competition can set the price for its product? (a) It could earn economic profit, which is its main goal. (b) Easy entry and exit to this market prevent monopolies to establish their market power. (c) Adv ...
many political parties promise to lower the prices of certain necessities in order to capture votes. A relatively easy way to achieve this is to use a government-owned natural monopolist to fix the price below thefree-market price. For example, many European governments set up natural monopolies...
Yes. The government is responsible for intervening in the monopoly firm to control them due to their market power activities. Firstly, the governments...Become a member and unlock all Study Answers Start today. Try it now ...
economic science,economics,political economy- the branch of social science that deals with the production and distribution and consumption of goods and services and their management corner- a temporary monopoly on a kind of commercial trade; "a corner on the silver market" ...
have a patent on the drug, thus Pfizer is the only company that can produce and sell Viagra until the patent runs out. Patents are tools that governments use to promote innovation, as companies should be more willing to create new products if they know they'll have monopoly power over thos...
A monopoly firm with market power will produce a level of output at which price is greater than marginal cost. Is this statement true? Explain your reasoning, and use a graph (the monopoly model with What happens to a monopoly if a lower-cost firm enters the market? Explain with referen...
63.C ".monopolies,depending on how essential their product was,could charge as much as they wanted for their product."64.B "Ida Tarbell's articles.described the methods that these monopolies would use to drive rival companies out of business."65.D 解析 暂无解析 扫码下载文库App 免费查看...