Homework Answers
Answer-12 The correct option is c.) charge a price equal to C and earn an economic profit of BEDC.
[At Profit-maximising level, MR =MC price corresponding to this point is C. Profit = TR-TC = area(BEDC)].
Answer-13 The correct option is a.) oligopoly market.
Oligopoly market is characterised by few sellers.
Answer-14 The correct option is b.) Cartel; monopoly
Answer-15 The correct option is a.) Restrict output in order to increase the market price of the good produced.
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12-15
PRUCLSEARCHER MARKETS WITH HOGH ENTKY BARRERS CHAPTER S Price EXHIBIT 10 125 MC ATC MR...
15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-s...
15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)? a. Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost. b. Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average...
keep getting wrong answer Price -nC ATC MR Ouantity Refer to Exhibit 23-1. If the product...
keep getting wrong answer
Price -nC ATC MR Ouantity Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output? a. area PIP2CB b. area P2CAPI C. area BCA d. area OP:BQ:
Suppose that a price taker had a marginal cost function given by: MC = 10 +...
Suppose that a price taker had a marginal cost function given by: MC = 10 + 2q. In a competitive market, the price is $20. If the firms in this industry form a cartel, this firm will have a production quota of 4 units. The cartel will be able to increase the price to $24. 21 betermine the producer surplus when the firm produces the production quota. 22)Suppose that if this firm cheats on the cartel, the price remains at...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product and each firm comprises only a very small portion of the total market. 2. If a price-taker firm wants to sell its output, it must accept the market price, but it can sell as much output as it wishes at that market price. O N 3. For a price-taker firm, its marginal revenue from the sale of an addi- tional unit is generally less...
10) In the above figure, what is the profit-maximizing output and price?
10) In the above figure, what is the profit-maximizing output and price? A) 8, $7 B) 10, $8 C) 12, $10 D) 10, $10 11) In the above figure, what is the price the firm receives if the output is 8? A) $10 B) $2 C) $7 D) $8 12) The short-run break-even price A) Is the price at which the firm's current liabilities are paid off? B) Is the price at which a firm's total revenues equal total costs? C) Occurs at the output at which the firm yields a below normal...
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b. increase competition. c. behave independently. d. maximize joint profit. 2. If a firm's product loses brand loyalty, then the demand curve will: a. Become less price elastic. b. Shift to the right. c. Become more price elastic. d. Shift to the left. 3. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case, the monopolist produces: a. Less...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not...
QUESTION 5 A monopolistically competitive firm will: maximize profits by producing where MR = MC. not likely earn an economic profit in the long run. shut down in the short run if price is less than average variable cost. all of the above. QUESTION 6 A monopolistic competitive firm is inefficient because the firm: earns positive economic profit in the long run. is producing at an output corresponding to the condition that marginal cost equals price. is not maximizing its...
Price 18+ 16 14 + 12 + 10+ 8 MC - AC-58 6+ D 4+ MR...
Price 18+ 16 14 + 12 + 10+ 8 MC - AC-58 6+ D 4+ MR 0 1 2 3 4 5 6 7 8 a) To maximize profit the monopoly will produce lunches and charge per lunch. (2 points) b) How did you determine the monopoly's equilibrium price and quantity? (list your steps) (2 point) C) If the firm loses its monopoly status and many other firms are allowed to enter the market so that the market becomes competitive,...
Help on the Microecononomics questions please Exhibit 23-9 Refer to Exhibit 23-9. Suppose that the market...
Help on the Microecononomics questions please Exhibit 23-9 Refer to Exhibit 23-9. Suppose that the market starts out at long-run competitive equilibrium with price equal to P1 and producing Q1 output, and then demand increases from D1 to D2. As a consequence, the typical profit-maximizing firm will a. increase quantity produced by (q2 - q1). b. decrease quantity produced by (q2 - q1). c. decrease quantity produced by (q1 - q3). d. not change its output level because the demand...
keep getting wrong answer
Price -nC ATC MR Ouantity Refer to Exhibit 23-1. If the product is produced under single-price monopoly, what do profits equal at the profit maximizing level of output? a. area PIP2CB b. area P2CAPI C. area BCA d. area OP:BQ:
Suppose that a price taker had a marginal cost function given by: MC = 10 + 2q. In a competitive market, the price is $20. If the firms in this industry form a cartel, this firm will have a production quota of 4 units. The cartel will be able to increase the price to $24. 21 betermine the producer surplus when the firm produces the production quota. 22)Suppose that if this firm cheats on the cartel, the price remains at...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
TRUE OR FALSE TF DO 1. In a price-taker market, all firms produce an identical product and each firm comprises only a very small portion of the total market. 2. If a price-taker firm wants to sell its output, it must accept the market price, but it can sell as much output as it wishes at that market price. O N 3. For a price-taker firm, its marginal revenue from the sale of an addi- tional unit is generally less...
Price 18+ 16 14 + 12 + 10+ 8 MC - AC-58 6+ D 4+ MR 0 1 2 3 4 5 6 7 8 a) To maximize profit the monopoly will produce lunches and charge per lunch. (2 points) b) How did you determine the monopoly's equilibrium price and quantity? (list your steps) (2 point) C) If the firm loses its monopoly status and many other firms are allowed to enter the market so that the market becomes competitive,...
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