In his local city, Mike is now able to monopolize the FlowerIndustry. He now fac
ID: 1232008 • Letter: I
Question
In his local city, Mike is now able to monopolize the FlowerIndustry. He now face with the following demand and costschedule. Price perflat Flats TotalCost $28 0 $ 15 26 1 29 24 2 38 22 3 45 20 4 55 18 5 67 16 6 83 14 7 104 12 8 128 A) Was monopolizing the flower industry worth of Mike's timeand effort? Why or why not. B) What changes can consumers expect to see in the flowerindustry after takeover is complete? Show if consumers better offor worse off since his takeover of flower industry? As monopoly,would it be possible to earn even more? Show why or why not, whatconditions need to exist for his plan to work? C) The local government decides to step in and protect thelocal citizens by regulating Mike's monopoly (as opposed to havinga local government suing him). Graph and explain all the optionsavailable to the city government and how consumers would benefitfrom such regulation. In his local city, Mike is now able to monopolize the FlowerIndustry. He now face with the following demand and costschedule. Price perflat Flats TotalCost $28 0 $ 15 26 1 29 24 2 38 22 3 45 20 4 55 18 5 67 16 6 83 14 7 104 12 8 128 A) Was monopolizing the flower industry worth of Mike's timeand effort? Why or why not. B) What changes can consumers expect to see in the flowerindustry after takeover is complete? Show if consumers better offor worse off since his takeover of flower industry? As monopoly,would it be possible to earn even more? Show why or why not, whatconditions need to exist for his plan to work? C) The local government decides to step in and protect thelocal citizens by regulating Mike's monopoly (as opposed to havinga local government suing him). Graph and explain all the optionsavailable to the city government and how consumers would benefitfrom such regulation.Explanation / Answer
In your class, have you been deriving marginal revenue equations from the equations for the demand curves, or do you solve these problems strictly by looking at the tables, without solving equations?