Economics Homework Nine Answers - Student Twelve

James G. Lecture 9

1. Identify an industry not mentioned in the lecture that is an oligopoly, and explain why that is an oligopoly.

Cell phone service providers are an oligopoly because it is so hard for any one to even consider entering into the competition.

Excellent.

2. Order the types of industries from those having the lowest price (due to the greatest competition) to those having the highest price (due to the least competition).

The order is as follows; perfect competition, perfectly contestable markets, monopolistic competitions, oligopolies, cartels, and monopolies.

Right.

4. List how monopolies can be established.

The licensing of professionals, control of a valuable resource, the effects of Economies of scale, and government grants of patents and copyrights can establish monopolies.

Correct, except you missed the first one: government monopolies established by law, such as cable franchises. (Minus 1).

5. What prevents a monopoly from increasing its prices without limitation?

When MR = MC a monopoly will stop raising its prices as it will begin to lose money.

Right. Also mention the Law of Demand still applies. But your answer was good enough.

39/40. Well done!--Andy Schlafly 23:09, 15 November 2009 (EST)