Explain the problem encountered by successive monopolies? How can the supplier and the producer overcome this problem?
Successive monopolies face the problem of double marginalization whereby the joint profits of the firms are lower if they operate independently than if they cooperate. They can solve the problem by merging or devising a contract. Under such an agreement the producer would agree to transfer a portion of his/her profit to the supplier.
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An increase in the demand for tattoos will lead to a:
a. higher price and a larger quantity sold. b. lower price and a larger quantity sold. c. higher price and a smaller quantity sold. d. lower price and a smaller quantity sold
Which of the following describes a natural monopoly?
a. When economies of scale are large relative to size of market b. Created by the government through patents, copyrights c. When one firm has control of a physical resource d. When one firm pursues predatory pricing
Who are the decision makers in the most basic macroeconomic model?
What will be an ideal response?
Average product is equal to
A) marginal product + total product. B) total product ÷ marginal product. C) total product ÷ quantity of labor. D) total product × quantity of labor. E) marginal product × quantity of labor.