your just answering these questions. Answer them in complete sentences. Also see attachment for questionsю
Question and problems
- The perfectly competitive firm exhibits resource allocative efficiency (p=MC), but the single-price monopolist does not. What is the reason for this difference?
3. When a single-price monopolist maximizes profits, price is greater than marginal cost. This means that buyers would be willing to pay more for additional units of output than the units cost to produce. Given this, why doesn’t the monopolist produce more?
5. IT has been noted that rent seeking is individually rational but socially wasteful. Explain.
9. Make a list of market monopolies and a list of government monopolies. Which list is longer? Why do you think this is so?
1. What, if anything, do all firms in all four market structures have in common?
6. Why does interdependence of firms play a major role in oligopoly but not in perfect competition or monopolistic competition?
10. Give an Example of a prisoner’s dilemma situation other than the ones mentioned in the chapter.
11. How are oligopoly and monopolistic competition alike? How are they different?
2. Explain why defining a market narrowly or broadly can make a difference in how antitrust policy is implemented.
4. How does a vertical merger differ from a horizontal merger? Why would the government look more carefully at one than at the other?
6. Explain price regulation, profit regulation, and output regulation.
8. What is the major difference between the capture theory of regulation and the public interest theory of regulation?
- What forces and factors determine the wage rate for a particular type of labor?
10. Explain the relationship between each of the following pairs of concepts: (a) the elasticity of demand for a product and the elasticity of demand for the labor that produces the product; (b) the labor cost-total cost ratio and elasticity of demand for labor; (c) the number of substitutes for labor and the elasticity of demand for labor.
1. What is the difference between a craft (trade) union and an industrial union?
2. What view is a labor union likely to hold on each of the following issues? (a) easing of the immigration laws; (b) a quota on imported products; (c) free trade; (d) a decrease in the minimum wage.
6. What is the effect of labor unions on nonunion wage rates?
1. The Gini coefficient for country A is 0.35, and for country B, it is 0.22. From this, it follows that the bottom 10 percent of income recipients in country B have a greater percentage of the total income than the bottom 10 percent of the income recipients in country A. Do you agree or disagree? Why?
2. Would you expect greater income inequality in country A, where there is great disparity in age, or in country B, where there is little disparity in age? Explain your answer.
3. Has U.S. income inequality increased or decreased (if we compare the income distribution in 1967 with the income distribution in 2004)? What percentage of total money income did the top fifth of U.S. households receive in 2004?
4. What is the overall economic function of profits?
7. Make an attempt to calculate the present value of your future income.