Why are monopolies socially inefficient?

If Americans traditionally dislike monopolies, why do some monopolies exist today? What types of monopolies are they, and what are their characteristics?

How is the perceived demand curve for a monopolistically competitive firm different from the perceived demand curve for a monopoly or a perfectly competitive firm?

What the supply curve of a perfectly competitive firm is?

The long-run industry supply curve for a perfectly competitive firm is A. flatter and more elastic than the short-run supply curve. B. flatter and more inelastic than the short-run supply curve. C. steeper and more elastic than the short -run supply curve. D. steeper and more inelastic than the short -run supply curve. E. more horizontal and more inelastic than the shortrun supply curve.

Are market supply curves typically more elastic in the short run or in the long run? Explain.

The movie theater in Collegetown serves two kinds of customers: students and professors. There are 900 students and 100 professors in Collegetown. Each student’s willingness to pay for a movie ticket is $5. Each professor’s willingness to pay for a movie ticket is$10. Each will buy at most one ticket. The movie theater’s marginal cost per ticket is constant at $3, and there is no fixed cost.

a. Suppose the movie theater cannot price-discriminate and needs to charge both students and professors the same price per ticket. If the movie theater charges$5, who will buy tickets and what will the movie theater’s profit be? How large is consumer surplus?

b.If the movie theater charges $10, who will buy movie tickets and what will the movie theater’s profit be? How large is consumer surplus?

c. Now suppose that, if it chooses to, the movie theater can price-discriminate between students and professors by requiring students to show their student ID. If the movie theater charges students$5 and professors $10, how much profit will the movie theater make? How large is consumer surplus?

The accompanying diagram illustrates your local electricity company’s natural monopoly. The diagram shows the demand curve for kilowatt-hours (kWh) of electricity, the company’s marginal revenue (MR) curve, its marginal cost (MC) curve, and its average total cost (ATC) curve. The government wants to regulate the monopolist by imposing a price ceiling.

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.

How does the government attempt to encourage positive externalities and limit negative externalities? Give two examples of each.

Do you think there should be more or less government regulation? Give reasons for your answer.

Think of a person you know who you think lives in poverty. What steps could the government take to help this person escape poverty? Do you think the government should do these things? Would you be willing to pay more taxes to support this type of help?

What is integrated delivery system in healthcare?

Why is strategic planning important in healthcare?

Use the following key to label each of the situations as a positive externality or a negative externality. Then explain why the externality is positive or negative. P = positive externality. N = negative externality. ___ Your community has excellent schools. ____________