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1. Which of the following is the best example of a government sanctioned monopoly?
a. a public utility company.
b. a k-12 public education school district.
c. a newly patented drug.
d. Microsoft's Windows products.
e. All are very good examples of such a monopoly.
2. Which of the following is the most economically justifiable barrier to entry?
a. a market with an MES of 100 percent
b. a market involving various pricing policies that may be legal or illegal.
c. a market with heavy use of trademarks.
d. none of the above.
A firm has a monopoly on a new type of gaming console. The market demand is given by P=175.3-0.003*Q and thus marginal revenue is MR=175.3-0.006*Q. The monopolist's marginal cost is MC=5.2+0.001*Q. Calculate the profit-maximizing production quantity.
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