Reference no: EM131387245
1. In the town of Linsberg, Chuck is the only craft brewer. In the neighboring town of Krugerville, Justin and Tom each run a craft brewery and compete for customers. Which town is likely to have higher prices and greater deadweight loss?
a) Linsberg will have higher prices and Krugerville will have greater deadweight loss.
b) Linsberg will have higher prices and greater deadweight loss.
c) Krugerville will have higher prices and Linsberg will have greater deadweight loss.
d) Krugervile will have higher prices and greater deadweight loss.
2. As new ride-sharing companies compete against taxi companies which had previously enjoyed monopoly power, what will happen to the price and quantity of transportation services?
a) Prices will rise and quantity will rise.
b) Prices will fall and quantity will rise.
c) Prices will rise and quantity will fall.
d) Prices will fall and quantity will fall.
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The price and quantity of transportation services
: In the town of Linsberg, Chuck is the only craft brewer. In the neighboring town of Krugerville, Justin and Tom each run a craft brewery and compete for customers. Which town is likely to have higher prices and greater deadweight loss? As new ride-sh..
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