Urban transit systems, especially those with rail systems, typically experience significant economies of scale in operation. Consider the transit system data in Table 11.4. Note that the quantity is in millions of riders. Draw the demand, marginal revenue, marginal cost, and average cost curves. Do they have the normal shapes?
From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology required having a wire running to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)
everyone. Today we're solving problem number four from Chapter 11 of the tux work, which asks us with this era of globalization and increase communication. Would you expect anti trust policies and authorities to become broader in scope? Narrow Go. So just explain what globalization is. It's the increased connectedness of our world, different ideas, people in places, those big ideas, people in places. And it's interconnecting our world, greater communication technologies all helping speed that up on. It's pretty amazing. So it has an idea of globalization and look the words global. And I would say that you'd expect it's become broader and go. And the reason why is because there's going to be more competition in our interest will increasingly globalized where and not just competition from the United States, Europe and what lesson? The Western world. Rather, it's competition from every single corner, every single part of this world, which I think is pretty good. Obviously everyone has their opinions of globalization, and how did make it effective. But, um, regardless, globalization will create, and Boston more competition from even far away places. So that's the big idea, very believe that over from broader Um, however, there is an exception. So one thing to note about the fact that it's broader just because antitrust authorities become broader and they're and they're more leniency they cannot use. They're tight grip on monopolies and preventing the boobs. Still, it's restrict essentially our stern in nature. Think strictest, better support age still needs to be strict. The reason for this is because what is anti draughts? Well, if you guys are history buffs out there, you know there's a share mine antitrust act Clayton antitrust act. Um, and those two, you know, sat fascinates for all right there. No more monopolies. You're not dealing with trust busting, you know? I mean, we are gonna trust bust because we do not want monopolies. Essentially, that's what antitrust is limiting, preventing monopolies from becoming way too powerful. The anti show still needs to be straight in nature, so they cannot, like, loosen their grip on cos sexually. But overall, it's still gonna be broader again. This is also kind of an opinion in question. I believe the answer, though, is definitely broader, but the way you explain it could be different. I believe more competition being fostered all over the world is going to make a broader anyways, but this will always be true. So there you have it. If you guys enjoy this explanation, he's felt like but next to it, I hope you all have in our state and thank you for watching today.