Economic inefficiency of a monopoly is indicated by
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The economic inefficiency of a monopolist can be measured by the
A. the number of consumers who are unable to purchase the product because of its high price.B. the poor quality of service offered by monopoly firms.C. the excess profit generated by monopoly firms.D. the deadweight loss.
In the context of the IPRs, discuss the following
(a) Static inefficiency caused by monopoly(b) Dynamic efficiency caused by monopoly
An important reason for the economic regulation of the industry is the presence of a natural monopoly.
A. Briefly explain what is meant by a natural monopoly.
B. How is a natural monopoly efficient in one way but inefficient in another?
C. Discuss two ways in which a regulatory commission could eliminate the inefficiency associated with a natural monopoly.
D. Does your answer above meet the incentive regulation criteria?
Explain.