Monopoly and market structure

Question 1

Herfindahl - Hirschaman index is more sensitive to

n-firm concentration ratio

Answer 1

Mergers

Question 2

Monopolist

Answer 2

Observation:
All firms maximize profits when MR = MC

Price searches take prices from demand curve (MR=MC)

Downward sloping demand curve and
High Barries to entry
High prices than MC

Question 3

Single Price Monopoly:

What is a pricing strategy?

What is average cost pricing?

Answer 3

Higher Price
Less consumer surplus
More Producer Surplus

(Monopoly scenario)
Consumer Surplus Decreases ⬇️

In a greater amount than the producer surplus increases.

(Difference is called Deadweight loss)

High barries to entry, Monopoly of natural resources and

2. Regulation company set the price = Marginal cost
3. Average total cost intersects demand curve. (Decrease price, Increase Allocative Efficiency)

Question 4

Concentration Measures are used to indentify:

Answer 4

Market structure of an industry:
Perfect competition
Monopolistic

Oligopoly

Question 5

Kinked Price

Answer 5

Chart do joelho! Prices down = inelastic curve

Question 6

Regulation is associate with demand?

Answer 6

No, it is not associate with a shift in demand curve

Question 7

Dominant firm oligopoly

Natural monopoly

Answer 7

One firm has a significant cost advantage
Control industry price and sales supply

When a firm has its ATC decrasing with increasing in output

Question 8

Short Run Supply curve is

Answer 8

The horizontal sum of the MC of all firms in determined industry (Or sum of supply of all firms)