ECON 203: EXAM With Explained Answers 100%
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Homework #5
1) City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and
demand information are given below. An unregulated monopoly will produce
million therms of natural gas and sell each therm for .
Quantity
(Millions of therms)
Price ($ per therm)
Total Cost (million $)
1 48 35
2 44 64
3 38 90
4 30 113
5 20 133
6 8 150
-3; $38
2) has occurred if a government-owned firm becomes privately owned.
-Privatization
3) A minimum resale price maintenance agreement requires a dealer who buys from a
manufacturer
.
-to sell for at least a certain minimum price
, ECON 203: EXAM With Explained Answers 100%
Correct Download To Score A
4) The four-firm measures the percentage share of the total sales in
the industry that is accounted for by the largest four firms.
-Concentration
5) A monopolistically competitive firm may earn abnormally high profits in the .
-short term, but the process of entry will drive those profits to zero in the long run
6) Through the process of exit, in the long run, monopolistically competitive firms
remaining in the market:
-are no longer earning losses - they are earning zero economic profit.
7) Perfect competition displays because the social benefits of additional
production, as measured by the price that people are willing to pay, are in balance with
the to society of that production.
-allocative efficiency; marginal costs
8) If each of the two competing monopolists undertakes equal efforts to attract
consumers away from the other, the total result is:
-they will simply neutralize one another's efforts.
9) Government passed the to limit the power of large,
consolidated firms that were run by trustees as if they were a single firm.
Correct Download To Score A
Homework #5
1) City Gas is a natural monopoly that supplies natural gas to a particular city. Its cost and
demand information are given below. An unregulated monopoly will produce
million therms of natural gas and sell each therm for .
Quantity
(Millions of therms)
Price ($ per therm)
Total Cost (million $)
1 48 35
2 44 64
3 38 90
4 30 113
5 20 133
6 8 150
-3; $38
2) has occurred if a government-owned firm becomes privately owned.
-Privatization
3) A minimum resale price maintenance agreement requires a dealer who buys from a
manufacturer
.
-to sell for at least a certain minimum price
, ECON 203: EXAM With Explained Answers 100%
Correct Download To Score A
4) The four-firm measures the percentage share of the total sales in
the industry that is accounted for by the largest four firms.
-Concentration
5) A monopolistically competitive firm may earn abnormally high profits in the .
-short term, but the process of entry will drive those profits to zero in the long run
6) Through the process of exit, in the long run, monopolistically competitive firms
remaining in the market:
-are no longer earning losses - they are earning zero economic profit.
7) Perfect competition displays because the social benefits of additional
production, as measured by the price that people are willing to pay, are in balance with
the to society of that production.
-allocative efficiency; marginal costs
8) If each of the two competing monopolists undertakes equal efforts to attract
consumers away from the other, the total result is:
-they will simply neutralize one another's efforts.
9) Government passed the to limit the power of large,
consolidated firms that were run by trustees as if they were a single firm.
