Question

1. why are patents allowed while other forms of monopolies are not? 11. what are natural monopolies and why are they allowed to exist? 12. what is price discrimination and when are companies allowed to do this? 13. what did ford do that made them a vertical monopoly? 14. why would coca - cola not be allowed to purchase pepsi? 15. what about monopolies are not good for the average consumer?

Explanation:

1. Patents are allowed to encourage innovation. They give inventors exclusive rights for a limited time to profit from their inventions, which incentivizes research and development. Other monopolies may restrict competition without the same innovation - promoting benefits.
2. Natural monopolies occur due to high fixed - costs and economies of scale, like in utility services. They are allowed because it is more efficient to have one provider rather than multiple competing firms that would duplicate infrastructure.
3. Price discrimination is charging different prices to different consumers for the same good or service. Companies are allowed when they can segment markets effectively and prevent resale, often to increase profits by capturing more consumer surplus.
4. Ford made itself a vertical monopoly by controlling multiple stages of the production process, from raw materials (like owning rubber plantations) to manufacturing and distribution, reducing costs and increasing control.
5. Coca - Cola would not be allowed to purchase Pepsi because it would create a near - total monopoly in the soft - drink market, reducing competition and potentially leading to higher prices and less choice for consumers.
6. Monopolies can charge higher prices than in competitive markets, limit output, and reduce innovation over time as they face less competition, all of which are不利 to the average consumer.

Answer:

1. Patents encourage innovation by giving inventors exclusive rights for a limited time to profit from their work, promoting R&D.
2. Natural monopolies result from high fixed - costs and economies of scale. They are allowed as single - provider is more efficient than multiple competitors duplicating infrastructure.
3. Price discrimination is charging different prices to different consumers for the same product/service. Allowed when market segmentation is possible and resale is preventable to increase profits.
4. Ford controlled multiple production stages, from raw materials to distribution, reducing costs and increasing control.
5. A Coca - Cola purchase of Pepsi would create a near - monopoly in soft - drinks, reducing competition and harming consumers.
6. Monopolies can charge higher prices, limit output, and reduce innovation, which are bad for consumers.