U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry
and create monopoly power by granting rms patents? Use a variety of sources from the web to answer the question.
2

1. U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?

2.

A monopoly producer of foreign language translation software faces a demand and cost structure as given in the table above.

a) What is the marginal revenue from the sale of the 12th unit?

b) What is the firm's profit-maximizing output and what is the price charged to sell this output?

c) What is the amount of the firm's profit?

3. If McDonald's bought Burger King,

a) Would this be an example of a horizontal merger or a vertical merger?

b) Would the concentration ratio for the fast-food industry change as a result of this merger? Why or why not?

A government-created monopoly arises when

a. government spending in a certain industry gives rise to monopoly power.

b. the government exercises its market control by encouraging competition among sellers.

c. the government gives a firm the exclusive right to sell some good or service

d. All of the above could qualify as government-created monopolies

1. Which characteristic led to Microsoft exercising monopoly power?