2. Give an example of a government-created monopoly. Is this bad public policy? Why? In many cases, the emergence of monopolies related to the granting by the government to an individual or company of exclusive rights to sell goods (tobacco, salt, etc.). A classic example of a monopoly that occurs due to ownership of a resource, such as a diamond company. The power of a government-created market monopoly depends on the existence of closely substituted products. If people consider emeralds, rubies and sapphires to be quite worthy substitutes for diamonds, they have relatively limited market power. In this case, any attempt to achieve an increase in the price of diamonds will lead to the fact that consumers will switch to purchasing other precious stones. But if people believe that these stones are significantly inferior diamonds, the company is able to significantly influence the market price of the latter. Sometimes the appearance of such a monopoly becomes the result of political influence. Examples of monopoly serving the public interest are patents and copyrights. If the pharmaceutical company creates a new drug, it can apply to the relevant government authorities to obtain a patent. If they discover that a new drug is truly original, they issue a patent that grants the developer the exclusive right to make and sell the drug. Likewise, when a writer finishes a new work, he or she can register the copyright (government guarantee) that no one else has the right to publish and sell a book without the author's permission. Copyright causes the writer to sell his book.3. What is the prisoner's dilemma and what does it relate to oligopoly? Oligopoly analysis of profit identical to monopoly profits: in the short term it can become positive, zer...... middle of paper...... negative externalities you face on campus. The first positive externality I face on campus is staying inside because everything I need to study is nearby: faculty, library, pavilion. It doesn't take much time to go from college to faculty or library. The second positive externality is that almost all of my friends currently live on campus. Then we can easily meet for dinner or discuss group homework. It's also very nice when we meet so often near the collage. The third positive externality is that I wouldn't spend money on fuel if I had a car. But there is no need for a car because everything is close by. The first negative externality of the campus is the bus schedule because they never arrive on time. Students have to wait for the bus in hot weather or may even be late because of it. The second negative externality is food. The third negative externality is