Pricing Practices of A Monopolist Questions

Question Description

I need support with this Economics question so I can learn better.

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

1. Answer all parts (a) – (f).
Suppose a regulator oversees the pricing practices of a monopolist who sells an identical good in
more than one market.
(a)
[5 marks] Why would the regulator be concerned about the ability of consumers to resell the
good?
(b)
[10 marks] If a regulator’s only power is the ability to make the monopolist charge the same
price across all markets, why might the regulator choose to impose a uniform price? [The alternative
is to allow the monopolist to choose different prices in the different markets.]
(c)
[10 marks] If the regulator’s powers are enhanced so the regulator can now set separate
prices in each market, why would the regulator prefer to set different prices in each market rather
than setting a uniform price across all markets?
Now consider an upstream monopolistic manufacturer who agrees a deal with a downstream
monopolist retailer that stipulates a variety of restrictions on the retailer.
(d)
[10 marks] What impact is this vertical restraint likely to have on the price charged to
consumers?
(e)
[10 marks] What impact is this vertical restraint likely to have on service provisions for the
consumers?
(f)
[5 marks] What additional regulatory concerns arise if the manufacturer has similar
constraints with other retailers in competing markets?

Purchase answer to see full
attachment

Explanation & Answer:
6 Questions

Tags:
monopolist

Pricing Practices

competing markets

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with FENTYESSAYS.COM ESSAY’s honor code & terms of service.