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Title: Economics

Essay Details:

Subject: Miscellaneous
Author: Kimberly G
Date: June 19, 2014
Level: University
Grade: A
Length: 4 / 1003

Essay text:

Expansion in numbers, reduction in input costs. Constant Cost = Page 577, constant return Increasing Cost = example, Bus Lines MONOPOLY = a market structure example, Northeast Utilities Characteristics: No Close Substitutes Inelastic product One seller, many busyers little knowledge high barriers to enter and leave market resources are not mobile. must be a necessity Problem with Monopolies Monopolies tend to misalocate resources Not as efficient = monopolies work where MC = MR Monopolies will not produce as much as consumer wants Monopolies lack incentives, no competition Ways of Controlling Monopolies Regulate Break it up Taxes Good Points of Monopolies Average cost is lower and passes on to the consumer May be the only rational way to offer a product Cartels = example: OPEC - a monopoly, outside of the US Control, deals in a natural resource...

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