Regulating monopolies and potential monopolies
Problem: Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?
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1. Define a monopoly. 2. Find two examples of monopolies and they cannot be the same type of monopoly (no choosing two government monopolies for example).
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Who was right in this case? In other words, did Microsoft's bundling of Microsoft Explorer with Windows extend its operating system monopoly and "substantially lessen competition and tend to create a monopoly" in the browser market?
Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?
1. Determine the optimal two part pricing strategy. 2. How much additional profit do you earn using a two part pricing strategy compared with charging the consumer a per unit price?
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Response the following question by using appropriate APA style of writing. Task: Address the differences between monopolies, monopolistic competition, and oligopolies.
A per-unit tax t>0 is levied on the output of a monopoly. The monopolist faces demand q=p^-e, e>1, and has constant average costs. Show that the monopolist will increase price by more than the amount of the per-unit tax.
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