Compare the consumer surplus with producer surplus

Reference no: EM1370661

1. Assume a monopolist could perfectly price discriminate (i.e., this would be 1st degree price discrimination). Compare the consumer surplus, producer surplus, and total surplus in this situation to those same measures in a perfectly competitive market.

2. In a large number of cities around the world, the local, tax-supported fire department has a monopoly on putting out fires. Suppose the mayor of your town believes monopolies are bad. He proposes to eliminate the fire department and have the market assume control.

Briefly, but with some detail, outline what the mayor must mean by having the market assume control (the more specific, the better). Then briefly discuss the merits of having a monopoly in charge and the merits of having the market put out fires. It might be helpful to answer this question by setting up a simple example. For instance, imagine that you live in a residential neighborhood of the city in question and your house begins to smolder. Assume that you are unable to put the fire out yourself-you need some help.

Reference no: EM1370661

Questions Cloud

What is the speed of the wooden ball : The reflecting surfaces of two intersecting flat mirrors are at the angle of 59. A light ray strikes the horizontal mirror, reflects off horizontal mirror, impinges on the raised mirror, reflects off the raised mirror and proceeds in the right-han..

Write program to test every entry of table is saddle point : Saddle point is entry in a table which is a minimum for its row and maximum for its column. Write a program which will test every entry of table to see whether it is saddle point.

Compute the money multiplier : Imagine one of worst case scenarios realizes in October 2012, in which Greece does not belong to the eurozone any more, so Greece goes back to use of its own currency, Greek drachma.

Explain the importance of identifying norms within a team : Explain the importance of identifying norms within a team and Why is clear communication considered an essential element during team development?

Compare the consumer surplus with producer surplus : Compare the consumer surplus, producer surplus, and total surplus in this condition to those same measures in a perfectly competitive market.

Question about operating of a business : Assume you decide to open a copy store. You rent store space, and you take out a loan at a local bank and use the money to buy 10 copiers.

Conclude the net charge contained within the cube : A helicopter is ascending perpendicularly with a speed of 5.02 {rm m/s}. At a height of 115 {rm m} above the Earth, a package is dropped from the window.

Find the maximum loan the bank can extend : Assume the Required Reserve Ratio is 10% and the balance sheet of the People's National Bank looks like the accompanying example:

Write application to inputs ten numbers from user : Write the application to inputs ten numbers from user, each number can be between 10 and 100, inclusive. As each number is read in determine if it is number already entered.

User Account

All Pages