Example of a cost-based monopoly

Assignment Help Macroeconomics
Reference no: EM131055046

The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other explanation?

Reference no: EM131055046

Questions Cloud

Military rule and back again exacerbated nigeria : How have the frequent shifts from civilian to military rule and back again exacerbated Nigeria's social and economic problems? What direction do you feel Nigeria should take in the future?
What is the price of the stock expected : Maritza has one share of stock and one bond. The total value of the two securities is 1,138 dollars. The bond has a YTM of 12.04 percent, a coupon rate of 11.46 percent, and a face value of 1,000 dollars; The expected return for the stock is 14.01 pe..
Description of the ultimatum game experiment : Read the description of the ultimatum game experiment in Section 13.6. How would you play if you were a subject in this experiment? What kind of offers would you make?
What growth rate is expected for litchfield design dividends : Kwame owns one share of stock of Fairfax Paint and one share of stock of Litchfield Design. The total value of his holdings is 140 dollars. Both stocks pay annual dividends that are expected to continue forever. What growth rate is expected for Litch..
Example of a cost-based monopoly : The U.S. Postal Service is a monopoly provider of first-class mail delivery (other companies such as UPS and FedEx can deliver packages, but not first-class mail). Do you think this is an example of a cost-based monopoly, or is there some other ex..
What can you do to change the laws and regulations : What can they (and you) do to change the laws and regulations that influence small business in order to lessen the burden?
What is the present value of the dividend expected : Common stock of Fairfax Paint is currently priced at 71.89 dollars per share. The stock is expected to pay annual dividends that are expected to grow by 3.81 percent forever. The next dividend is expected in 1 year and the expected annual return for ..
Google in mobile phone software : Explain how network effects are largely responsible for the large market shares enjoyed by Microsoft in desktop operating systems and by Google in mobile phone software.
What are the two common allotropes of sulfur : Your total response must be at least 200 Sulfur is one of the world's most important raw materials. Fires involving sulfur pose some unique hazards. Why are secondary fires likely to result near burning bulk quantities of sulfur? What precautions ..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Determine the nash equilibrium warranties

Acura and Volvo offer warranties on the automibiles, where wA is the number of years of an Acura warranty and w - V is the number of years of a Volvo waranty. The revenue for Firm i, i = A for Acura and V for Volvo is TRi=27,000wi / wA +wV. The fi..

  Why or how might the price of energy not decline

What factors affect how quickly U.S. businesses will actually increase their consumption of renewable fuels versus other energy sources?

  What pick would a level one reasoner make

Consider the "Beauty Contest" or guessing game experiment. Everybody picks an integer between 0 and 100 inclusive, and the winner is the person who picks closest to 2/3 of the average pick. a) What picks are ruled out by the idea of one level of it..

  Determine the cost of capital

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cost of capital.

  Calculate ilkka utility-maximizing purchases of x and y

Ilkka’s income is $120 and he spends it on two goods, X and Y. His utility function is U = XY. Both X and Y sells for $2 per unit.

  Define the impact of government regulation

Impact of Government Regulation

  One of the most important skills to learn in managerial

One of the most important skills to learn in managerial economics is the ability to identify a good business. Discuss at least four characteristics of a good business.

  Illustrtae what is nash equilibrium without an enforceable

Illustrtae what is the Nash equilibrium without an enforceable contract. Explain why this is the likely outcome.

  Elasticity of demand

How much does the gross price increase in each market

  What pricing strategy will yield the greatest revenue

A manufacturer of microwaves has discovered that male shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Female shoppers generally value microwaves more than men and attribute greater value t..

  What is the equilibrium level of income

What is the equilibrium level of income and derive the savings function and find the level of savings in this economy

  Using perfectly competitive labor demand and labor supply

Using the perfectly competitive labor demand and labor supply model, what would happen, all else equal, to the real wage and the number of workers in each of the cases below: A. There is an increase in the amount of physical capital as a result of po..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd