Please answer both of the following questions:
Homework Answers
4. Ans: The demand curve is perfectly elastic.
Explanation:
Perfectly elastic demand curve means the curve is a horizontal line parallel to X - axis. But, the demand curve faced by a monopolist is downward sloping.
5. Ans: $9,600
Explanation:
The profit maximizing condition is MR = MC. From the diagram it is seen that the profit maximizing quantity is 600 and price is $16.
TR = P * Q = $16 * 600 = $9,600
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Please answer both of the following questions:
Which of the following is NOT true about the...
1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by...
1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by a monopolist. Let fixed cost be $10,000 and Marginal Costs (MC)=20Q. a) What is the profit maximizing output? b) What is the monopolist's total revenue at the profit maximizing output? c) How much profit is the monopolist earning? d) Assume the government breaks up the monopolist in order to create a perfectly competitive market of identical firms. Assume the MC curve is now the...
please answer all 16. To say that a firm is a price taker means that: a....
please answer all
16. To say that a firm is a price taker means that: a. the firm's demand curve is perfectly inelastic b. the firm's marginal revenue curve is downward sloping c. the firm's average total cost curve is horizontal d. the firm can alter its output without influencing price e. all of the above 17. In a perfectly competitive market, the demand curve facing the firm is: a. identical to the market demand curve b. perfectly clastic even...
2. Consider the following exph (10 marks) Zoom ATC Ne The graph above shows the demand...
2. Consider the following exph (10 marks) Zoom ATC Ne The graph above shows the demand curve (D), marginal cost curve (MC), average cout exurve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The...
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The graph above shows the demand curve (D), marginal cost curve (MC), average cost curve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer: b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each addit...
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each additional unit of output adds exactly its price to total revenue. Ο the firm's average revenue curve is downward sloping. Ο the market demand curve is downward sloping. Ο the firm's marginal revenue and total revenue curves will coincide.
2. In a perfectly competitive industry, an individual firm's demand curve will be: a) Perfectly elastic....
2. In a perfectly competitive industry, an individual firm's demand curve will be: a) Perfectly elastic. b) Perfectly inelastic. c) Downward sloping to the right. d) Upward sloping to the right. 3. A firm in a competitive market will seek to... a) Minimize total costs. b) Maximize total revenue. c) Minimize marginal cost. d) Maximize the difference between total revenue and total cost. e) Maximize the difference between marginal revenue and marginal cost. In the short-run, if a firm's marginal...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Which of the following statements is accurate? Select the correct answer below: A. when the long-run...
Which of the following statements is
accurate?
Select the correct answer below:
A. when the long-run average cost (LRAC)
decreases as output increases, a firm is experiencing diseconomies
of scale.
B. when the long-run average cost (LRAC)
increases as output increases, a firm is experiencing diseconomies
of scale.
C. when the long-run average cost (LRAC)
increases as output increases, a firm is experiencing economies of
scale.
D. when the long-run average cost (LRAC)
decreases as output increases, a firm is...
1. Answer the following questions: a. Why is the demand curve for a monopolist downward-sloping, while...
1. Answer the following questions:
a. Why is the demand curve for a monopolist downward-sloping,
while the demand curve for the perfectly competitive firm is
horizontal?
b. Suppose a perfectly competitive industry is suddenly
transformed to a monopoly industry. What will happen to price,
output, consumer and producer surplus, and deadweight loss?
c. If the wireless phone industry is dominated by four large
firms, each with 20% of market share, and 2 small firms, each with
10% market share, what...
monopolist is a price maker. he will determine the quantity of output that will maximize revenue....
monopolist is a price maker. he will determine the quantity of output that will maximize revenue. the monopolistic faces a downward sloping demand curve because he can sell more if he lowers the price. the profit maximizing price and output is where marginal revenue equals marginal cost, then it is extended to the market demand curve to determine what market price corresponds to that quantity. the profit maximization price is c and quantity is q.
please answer all
16. To say that a firm is a price taker means that: a. the firm's demand curve is perfectly inelastic b. the firm's marginal revenue curve is downward sloping c. the firm's average total cost curve is horizontal d. the firm can alter its output without influencing price e. all of the above 17. In a perfectly competitive market, the demand curve facing the firm is: a. identical to the market demand curve b. perfectly clastic even...
2. Consider the following exph (10 marks) Zoom ATC Ne The graph above shows the demand curve (D), marginal cost curve (MC), average cout exurve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The graph above shows the demand curve (D), marginal cost curve (MC), average cost curve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer: b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
The MR = MC rule can be restated for a perfectly competitive seller as P = MC because: Multiple Choice Ο each additional unit of output adds exactly its price to total revenue. Ο the firm's average revenue curve is downward sloping. Ο the market demand curve is downward sloping. Ο the firm's marginal revenue and total revenue curves will coincide.
2. In a perfectly competitive industry, an individual firm's demand curve will be: a) Perfectly elastic. b) Perfectly inelastic. c) Downward sloping to the right. d) Upward sloping to the right. 3. A firm in a competitive market will seek to... a) Minimize total costs. b) Maximize total revenue. c) Minimize marginal cost. d) Maximize the difference between total revenue and total cost. e) Maximize the difference between marginal revenue and marginal cost. In the short-run, if a firm's marginal...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Which of the following statements is
accurate?
Select the correct answer below:
A. when the long-run average cost (LRAC)
decreases as output increases, a firm is experiencing diseconomies
of scale.
B. when the long-run average cost (LRAC)
increases as output increases, a firm is experiencing diseconomies
of scale.
C. when the long-run average cost (LRAC)
increases as output increases, a firm is experiencing economies of
scale.
D. when the long-run average cost (LRAC)
decreases as output increases, a firm is...
1. Answer the following questions:
a. Why is the demand curve for a monopolist downward-sloping,
while the demand curve for the perfectly competitive firm is
horizontal?
b. Suppose a perfectly competitive industry is suddenly
transformed to a monopoly industry. What will happen to price,
output, consumer and producer surplus, and deadweight loss?
c. If the wireless phone industry is dominated by four large
firms, each with 20% of market share, and 2 small firms, each with
10% market share, what...
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