A group seeks to restrict the number of government-issued licenses.rent-seekingHarnessing the benefits of competition, reducing trade barriers, and regulating markets are three:solutions to the problems of monopoly.
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If a cable company is a monopolist in a certain town, then it can bundle its channels together in any way it wants, and therefore force consumers into making limited choices.TrueIf a firm is producing a quantity of 100 and charging a price of $10, it:should continue to produce 100 units but raise the price to $25 to maximize profits.If a firm is producing a quantity of 100 and charging a price of $25, it:is already maximizing profits and should not change the price or quantity produced.If a firm is producing a quantity of 150 and charging a price of $13, it:should lower production to 100 units and raise the price to $25 to maximize profits.If a monopolist is producing a quantity where marginal revenue is equal to $16 and the marginal cost is equal to $17, the monopolistshould:decrease production and increase the price to maximize profits.If a monopolist is producing a quantity where marginal revenue is equal to $32 and the marginal cost is equal to $30, the monopolistshould:increase production and lower the price to maximize profits.If cable companies were in a highly competitive market, you would expect:a company to be willing to sell specific channels as well as packaged options.If this firm is profit-maximizing, society would experience _________ in deadweight loss. $525    If this firm is regulated at a point where it is making zero economic profits, society would experience __________ in deadweight loss. $112.50   
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Is there any way for a monopoly to operate more efficiently than acompetitive market? Why or how?No: the equilibrium point in a competitive market is the point of optimal market efficiency. For a monopoly, the equilibrium point is associated with a higher price and lost consumer surplus. There may, however, be other considerations besides market efficiency that are reasons to tolerate a monopoly.It is unrealistic to regulate a natural monopoly at marginal cost pricing because:with this type of regulation, the firm will want to shut down, and that outcome is not desirable for society.The lack of competition in a monopoly leads to a horizontal demand curve, as shown, for the market as a whole.FalseLicensing:creates an opportunity for corruption.Lobbying the government to place harsh tariffs on imports is a form of:rent-seeking.The marginal revenue lies _________ the demand curve becausethere is a(n) _________ effect whenever the price is lowered.
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