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# Order the answer to: In the United States, the Federal Trade Commission (FTC) is

Posted By George smith

Question
In the United States, the Federal Trade Commission (FTC) is charged with promoting competition and challenging mergers that would likely lead to higher prices. Several years ago, Staples and Office Depot, two of the largest office supply superstores, announced their agreement to

# Order the answer to: A monopolist knows that in order to expand the quantity

Posted By George smith

Question
A monopolist knows that in order to expand the quantity of output it produces from 8 to 9 units it must lower the price of its output from \$2 to \$1. Calculate the quantity effect and the price effect. Use these results

# Order the answer to: The movie theater in College town serves two kinds of

Posted By George smith

Question
The movie theater in College town serves two kinds of customers: students and professors. There are 900 students and 100 professors in College town. Each student’s willingness to pay for a movie ticket is \$5. Each professor’s willingness to pay for a

# Order the answer to: The accompanying diagram illustrates your local electricity company’s natural monopoly.

Posted By George smith

Question
a. If the government does not regulate this monopolist, which price will it charge? Illustrate the inefficiency this creates by shading the deadweight loss from monopoly.
b. If the government imposes a price ceiling equal to the marginal cost, \$0.30, will

# Order the answer to: Each of the following firms possesses market power. Explain its

Posted By George smith

Question
Each of the following firms possesses market power. Explain its source.
a. Merck, the producer of the patented cholesterol-lowering drug Zetia
b. Waterworks, a provider of piped water
c. Chiquita, a supplier of bananas and owner of most banana

# Order the answer to: A perfectly competitive firm has the following short-run total cost: Quantity

Posted By George smith

Question
A perfectly competitive firm has the following short-run total cost:
Quantity TC
0………………………… \$5
1………………………… 10
2………………………… 13
3………………………… 18
4………………………… 25
5………………………… 34
6………………………… 45
Market demand for the firm’s product is given by

# Order the answer to: The first sushi restaurant opens in town. Initially people are

Posted By George smith

Question
The first sushi restaurant opens in town. Initially people are very cautious about eating tiny portions of raw fish, as this is a town where large portions of grilled meat have always been popular. Soon, however, an influential health report warns consumers

# Order the answer to: A. A profit-maximizing business incurs an economic loss of \$10,000

Posted By George smith

Question
a. A profit-maximizing business incurs an economic loss of \$10,000 per year. Its fixed cost is \$15,000 per year. Should it produce or shut down in the short run? Should it stay in the industry or exit in the long run?

# Order the answer to: Consider again Bob’s DVD company described in Problem 4. a. Draw

Posted By George smith

Question
Consider again Bob’s DVD company described in Problem 4.
a. Draw Bob’s marginal cost curve.
b. Over what range of prices will Bob produce no DVDs in the short run?
c. Draw Bob’s individual supply curve.

Subject

# Order the answer to: Consider Bob’s DVD company described in Problem 4. Assume that

Posted By George smith

Question
Consider Bob’s DVD company described in Problem 4. Assume that DVD production is a perfectly competitive industry. For each of the following questions, explain your answers.
a. What is Bob’s break-even price? What is his shut-down price?
b. Suppose the