Microeconomics Multiply Choice Four-Part Question. For each part please give a s

Question

Microeconomics Multiply Choice Four-Part Question. For each part please give a short explanation of how or why.

Part 1: The demand curve for a monopolist is: a) a perfectly inelastic demand curve b) always a unit-elastic demand curve c) the industry demand curve e) the same as the demand curve for a perfectly copetitive firm.

Part 2: A monopolist has four distinct groups of customers: group A has an elasticity of demand of 0.2, group B has an elasticity of demand of 0.8, group C has an eleasticity of demand of 1.0. group D has an elasticity of demand of 2.0. The group paying the highest price for the product will be group" Group A or B or C or D

Part 3: Assume that Coca-cola has a market shre of 40% and Pepsi has a market share of 30%. If Pepsi and Coca-cola attempt to merge, will the Federal Trade Commission challenge that attempt in court? a) The Federal Trade Commission has no legal authority over mergers. b) No, the industry is not concentrated c) Yes, the industry is concentrated d) Any decision would have to be unknow until the FTC closely evaluated the effects.

Part 4:  

Which game does NOT describe a Prisoner's Dilemma outcome? competing electronics stores attempting to undercut each other's prices a game of chicken in which one player backs down while the other player does not cartel members attempting to increase profits by cheating on their production quotas rival department stores agreeing to accept each other's coupons and advertised specials

Explanation / Answer

First question is answered below

1. Correct option: (c) industry supply curve

Reason: Since monopolist is the singlemost producer in the industry, his demand curve represents demand curve of entire industry.

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