![CUpleension 2.doc [Compatibility Mode] 100% Se ument Elements Tables Charts SmartArt Re Paragraph AaßbCcDdEe Normal 31 BUAD 632 Keading Comprehension #2 9) The firm depicted in Figure 8.1 is: A) carning a positive economic profit B) incurring an economic loss and should shut down. C) incurring an economic loss but it should continue to operate in the short run so long as price exceeds average variable costs D) earning a zero economic profit 1495 :](http://img.homeworklib.com/questions/739670c0-6ffb-11ea-a0b7-c7af47d8a0c2.png?x-oss-process=image/resize,w_560)
Homework Answers
6. Ans. B) the firm is a price taker.
In case of monopoly, the firm decides on its own price and output , based on individual demand and cost conditions and is thus regarded as a price maker.
7. Ans. C) Price > Marginal Cost
In a monopoly market, Price > Marginal Cost at profit maximizing level of output, which is not there in case of Perfect Competition.
8. Ans. A) P4 and Q1
9. Ans. earning a positive economic profit.
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Normal 6) All of the following are possible characteristics of a monopoly except A) thene is...
Normal 6) All of the following are possible characteristics of a monopoly except A) thene is...
Normal 6) All of the following are possible characteristics of a monopoly except A) thene is a single firm. B) the firm is a price taker C) the firm produces a unique product D) the existence of some advertising 7) Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output? A) Price average revenue. B) Marginal revenue -marginal cost C) Price > marginal cost. D) Profit (AR-ATC) xQ Use...
Tables Charts Review Normal BUAD 632 Reading Comprehension #2 1) Perfectly competitive firms are said to...
Tables Charts Review Normal BUAD 632 Reading Comprehension #2 1) Perfectly competitive firms are said to be "small." Which of the following best describes this smallness? A) The individual firm must have fewer than 10 employees. B) The individual firm faces a downward-sloping demand curve. C) The individual firm has assets of less than $2 million. D) The individual firm is unable to affect market price through its output decisions. 2) Assume a perfectly competitive firm is producing a level...
Help with 14-16 please. 14. A Monopoly: A. Will realize an economic profit if price exceeds...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
Please answer the following 3 questions: Price МС ATC Tmi 5 ---- Quantity/Time MR According to...
Please answer the following 3 questions:
Price МС ATC Tmi 5 ---- Quantity/Time MR According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter e ż O O O O 3 Which of the following would best describe the demand curve faced by a monopoly firm? o vertical line at the output level O same as the market demand curve O same as the perfect competitor's demand curve O horizontal line at the...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 150 125-- 100 ATC MC-AVC 75 50 25 MR 0 20 4060 80 100 120 140 160 180 Quantity (units per month) PROFIT CALCULATIONS SETTINGS Reset $125.00 Market Price (Pmkt) Cost Structure LoeMarginal Revenue (MR) High Cost $50.00 Cost $95.00 Marginal Cost (MC) Quantity $7,500.00 $8,100.00 ($600.00) Revenue 120 40 Costs Quantity 60 Profit Instructions:...
Based on the graph below, notice there are cost lines and four different price levels. Answer...
Based on the graph below, notice there are cost lines and four different price levels. Answer the following A- D questions: MC P-MR-ID ATC AYC Quantity (A)Which point (a-g) on the graph is the profit-maximizing production level for a firm making positive economic profits? level? (B) Ifthis firm was in long-run equilibrium, which point would represent the profit-maximizing production (C) If the firm was incurring losses but would operate in the short run, which point would represent the loss- minimizing...
Answer A-H Please Answer the following Questions for a Monopoly Firm. Price Quantity TR MR MC...
Answer A-H Please Answer the following Questions for a Monopoly Firm. Price Quantity TR MR MC TC Profit $15,000 0 ---- ---- $50,000 14,000 1 $52,000 13,000 2 $53,000 12,000 3 54,000 11,000 4 $2,000 10,000 5 59,000 9,000 6 4,000 8,000 7 $69,000 7,000 8 $8,000 6,000 9 5,000 10 4,000 11 $18,000 3,000 12 $143,000 a) Fill in the missing information above for this Monopoly Firm for its monthly production. Note there are no numbers for MC and...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
need answers to these multiple choice questions for econ study guide MC ATC D. P3 QUANTITY...
need answers to these multiple choice questions for econ study
guide
MC ATC D. P3 QUANTITY 14. If the firm is in short-run equilibrium at a price of P5, a perfectly competitive firm will maximize total profits by producing at which of the following levels of output? a. Q1 b. 02 c. 03 d. Q4 e. Q5 15. At which price will this perfectly competitive firm make normal profit? a. P1 b. P2 c. P3 d. P4 e. P5 24....
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly...
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. Instructions: Use the tools provided to plot the profit-maximizing quantity (Q), the profit-maximizing price (P), the profit (Profit), and the deadweight loss (DWL). Note that the deadweight loss will be only approximate due to the curvature of the marginal cost curve....
Normal 6) All of the following are possible characteristics of a monopoly except A) thene is a single firm. B) the firm is a price taker C) the firm produces a unique product D) the existence of some advertising 7) Which of the following conditions holds for a monopolist, but not for a perfect competitor, at the profit-maximizing level of output? A) Price average revenue. B) Marginal revenue -marginal cost C) Price > marginal cost. D) Profit (AR-ATC) xQ Use...
Tables Charts Review Normal BUAD 632 Reading Comprehension #2 1) Perfectly competitive firms are said to be "small." Which of the following best describes this smallness? A) The individual firm must have fewer than 10 employees. B) The individual firm faces a downward-sloping demand curve. C) The individual firm has assets of less than $2 million. D) The individual firm is unable to affect market price through its output decisions. 2) Assume a perfectly competitive firm is producing a level...
Help with 14-16 please.
14. A Monopoly: A. Will realize an economic profit if price exceeds ATC at the profit-maximizing/loss-minimizing level of output. B. Will realize an economic profit if ATC exceeds MR at the profit-maximizing/loss-minimizing level of output c. Will realize an economic loss if MC intersects the down-sloping portion of MR D. Always realizes an economic profit. MC ATC AVC 15. At equilibrium, the profit-maximizing monopolist facing the situation shown in the graph above will face: A. Average...
Please answer the following 3 questions:
Price МС ATC Tmi 5 ---- Quantity/Time MR According to the above figure, the profit-maximizing output for this monopolist is found directly below the letter e ż O O O O 3 Which of the following would best describe the demand curve faced by a monopoly firm? o vertical line at the output level O same as the market demand curve O same as the perfect competitor's demand curve O horizontal line at the...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 150 125-- 100 ATC MC-AVC 75 50 25 MR 0 20 4060 80 100 120 140 160 180 Quantity (units per month) PROFIT CALCULATIONS SETTINGS Reset $125.00 Market Price (Pmkt) Cost Structure LoeMarginal Revenue (MR) High Cost $50.00 Cost $95.00 Marginal Cost (MC) Quantity $7,500.00 $8,100.00 ($600.00) Revenue 120 40 Costs Quantity 60 Profit Instructions:...
Based on the graph below, notice there are cost lines and four different price levels. Answer the following A- D questions: MC P-MR-ID ATC AYC Quantity (A)Which point (a-g) on the graph is the profit-maximizing production level for a firm making positive economic profits? level? (B) Ifthis firm was in long-run equilibrium, which point would represent the profit-maximizing production (C) If the firm was incurring losses but would operate in the short run, which point would represent the loss- minimizing...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
need answers to these multiple choice questions for econ study
guide
MC ATC D. P3 QUANTITY 14. If the firm is in short-run equilibrium at a price of P5, a perfectly competitive firm will maximize total profits by producing at which of the following levels of output? a. Q1 b. 02 c. 03 d. Q4 e. Q5 15. At which price will this perfectly competitive firm make normal profit? a. P1 b. P2 c. P3 d. P4 e. P5 24....
The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. Instructions: Use the tools provided to plot the profit-maximizing quantity (Q), the profit-maximizing price (P), the profit (Profit), and the deadweight loss (DWL). Note that the deadweight loss will be only approximate due to the curvature of the marginal cost curve....
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