Homework Answers
The monopoly firm maximizes the profit where the marginal revenue equals the marginal cost of the production. If the firm is earning a positive profit the average total cost should be below the price, this is shown in the below graph.
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find where e point, the atc curve, and the profit square is
supposed to be
Question...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. 10 MC Profit ATC MR 0 1 2 3 45 6 7 89 10 Quantity (millons...
The graph shows the demand curve for cable television. Assume that monopoly conditions apply. Demand What...
The graph shows the demand curve for cable television. Assume that monopoly conditions apply. Demand What is the firm's total revenue when selling cable television to 6 houses? 13 12 Price ($) - - total revenue: $ 6 5 What is the firm's marginal revenue from selling cable television to the 13th house? - 0 5 6 12 13 marginal revenue: $ Quantity (houses) The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1–3 below to identify the monopoly's profits....
Please graph clearly with labels!!! Thank you! Tennessee Subway Corporation is a natural monopoly. The graph...
Please graph clearly with labels!!! Thank
you!
Tennessee Subway Corporation is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Price and cost (dollars per month) Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1 The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a...
Suppose a firm is a monopoly. Its marginal cost curve is flat, and its average cost...
Suppose a firm is a monopoly. Its marginal cost curve is flat,
and its average cost curve is downward sloping (because it has a
fixed cost).
1.) Using the point drawing
tool,
indicate the monopoly's profit-maximizing price and quantity in
the figure if it cannot price discriminate. Label this point
'e 1e1.'
2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
profit-maximizing price and quantity. Label this rectangle
'Losses 1Losses1.'
3.) Using the point...
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB.
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing the loss. Suppose that BYOB charges $2.00 per can. Your friend Jake says that since BYOB is a monopoly with...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing tool graph the monopoly's marginal cost curve. Label this curve 'MC! 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line drawing tool, graph the monopoly's average cost curve. Label this curve...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. TTT 1.) Using the line drawing tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' p, $ per unit 3.) Using the line drawing tool, graph the monopoly's average...
Question 29 12 pts Below is the graph of a monopoly firm. Use the graph to...
Question 29 12 pts Below is the graph of a monopoly firm. Use the graph to answer the following Questions. 110 100 90 - 1 N 80 70 60 COST 50 - 40 30 20 10 D MR - 1 60 25 35 55 45 50 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are...
Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. IF BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit
4. Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for...
Problem 1e. The slope of the demand curve indicates that if the price of Fluff increases...
Problem 1e. The slope
of the demand curve indicates that if the price of Fluff increases
by 20 cents, consumers will buy one less unit. Determine what
happens to profit if price is increased by calculating the new
profit level for Fluff when price is set 20 cents higher than the
profit-maximizing price.
problem 2
Probem 3
Consider the graph, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. 10 MC Profit ATC MR 0 1 2 3 45 6 7 89 10 Quantity (millons...
The graph shows the demand curve for cable television. Assume that monopoly conditions apply. Demand What is the firm's total revenue when selling cable television to 6 houses? 13 12 Price ($) - - total revenue: $ 6 5 What is the firm's marginal revenue from selling cable television to the 13th house? - 0 5 6 12 13 marginal revenue: $ Quantity (houses) The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1–3 below to identify the monopoly's profits....
Please graph clearly with labels!!! Thank
you!
Tennessee Subway Corporation is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Price and cost (dollars per month) Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1 The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a...
Suppose a firm is a monopoly. Its marginal cost curve is flat,
and its average cost curve is downward sloping (because it has a
fixed cost).
1.) Using the point drawing
tool,
indicate the monopoly's profit-maximizing price and quantity in
the figure if it cannot price discriminate. Label this point
'e 1e1.'
2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
profit-maximizing price and quantity. Label this rectangle
'Losses 1Losses1.'
3.) Using the point...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing tool graph the monopoly's marginal cost curve. Label this curve 'MC! 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line drawing tool, graph the monopoly's average cost curve. Label this curve...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. TTT 1.) Using the line drawing tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' p, $ per unit 3.) Using the line drawing tool, graph the monopoly's average...
Question 29 12 pts Below is the graph of a monopoly firm. Use the graph to answer the following Questions. 110 100 90 - 1 N 80 70 60 COST 50 - 40 30 20 10 D MR - 1 60 25 35 55 45 50 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are...
Problem 1e. The slope
of the demand curve indicates that if the price of Fluff increases
by 20 cents, consumers will buy one less unit. Determine what
happens to profit if price is increased by calculating the new
profit level for Fluff when price is set 20 cents higher than the
profit-maximizing price.
problem 2
Probem 3
Consider the graph, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4...
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