Coursework in Economics

Coursework in Economics

Table of Contents
Question one....................................................................................................................................3
Question two....................................................................................................................................4
Question three..................................................................................................................................5
Question four...................................................................................................................................6
Question five....................................................................................................................................7
Question six.....................................................................................................................................8
Question seven.................................................................................................................................9
Question eight................................................................................................................................10
REFERENCES..............................................................................................................................11

Question one
A. Monopoly is problematic for a given economy or a government?
Since monopolies are sole providers, those who can charge anything they want. This is
referred to as price fixing. Since they know customers have no alternative, they will do anything
irrespective of demand. This is particularly true when economic activity is inelastic. When
individuals will not have a degree of leeway, this happens. Monopolies can not only lift
premiums, but they can also have inferior goods. This has occurred in some urban areas, where
food stores recognise that disadvantaged people have little options. A confidence will be formed
by a collective of firms to set rates low enough to push rivals outside from business. They would
increase premiums until they got a control on the business to recoup their profits. It would have a
commanding role as the web browser for desktop computers, which it used to bully a retailer,
Information. This also compelled machine manufacturers to hold back superior technologies
(Shoutong and Bureau, 2017).
B. Article explain how public policy can curb Monopolies.
This idea is often stressed as a possible economic danger to monopolies, as well as the
economic rationale is simple to demonstrate. Consider a supply and demand graph, in which
supply and demand converge to provide a reasonable price and total quantity. Assume that one
firm has complete ownership of the supply chain and will manipulate prices around the demand
curve to obtain increased costs than even the supply would allow. This enables monopoly power
to charge buyers who are more likely to pay a premium price while only taxing people who are
less prepared to pay regular rates. This really is unfair to customers, who would be willing to pay
whatever the price is and there are no other choices.
C. Cost curves explain how Monopolies make unusual profits.

The company will measure overall sales using the points upon on demand curve D, and
afterwards measure its monopoly firm regarding the total revenue. The profit-maximizing
amount will be reached when MR = MC, or even as soon as marginal product begin to outweigh
marginal income.
Question two
A)
16−2P=2+5P−2+2P=−2+2P14=7P
B) If sweets were 50 cents a bag, describe the situation in the market for sweets and explain what
would happen to the price of a pack of sweets.
C) Draw a graph.