Homework Answers
Ans) Monopoly charges a price where Marginal cost curve and Marginal revenue curve intersect. Monopoly produces less than optimal quantity. So, monopoly price is P4 and quantity is Q1.
Socially optimal quantity and price is where marginal cost curve and demand curve intersect. So, socially optimal quantity and price is Q3 and P2.
Regulated price is where ATC and demand curve intersect. So, regulated price and quantity are Q2 and P3
Option c.
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MC ATC MR 0 Q Refer to the graph for a pure monopoly. If the government...
Question 13 10 pts Use the following graph to answer the next question. MC ATC Р....
Question 13 10 pts Use the following graph to answer the next question. MC ATC Р. P P P: MR 0 Q, Q₂Q, If the government regulated the pure monopoly and made it produce the level of output that would achieve allocative efficiency, what price and quantity of output levels would we observe in the short run? OP and Q3 OP, and Q1 OP and Q1 OP, and Q2
Graph Worksheet MC DI MR P4 ATC P3 P2 AVC PI 02 1. What is the...
Graph Worksheet MC DI MR P4 ATC P3 P2 AVC PI 02 1. What is the price and quantity at the optimum level of production? Is this an economic profit, loss, or break-even? Should the firm produce? 2. If the industry model is monopolistic competition, what will happen to the industry? What will happen to the demand and marginal revenue curves for the individual firm? In the long run where will the demand curve be? Will the firm achieve productive...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65....
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit...
Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
Question 18 Refer to the figure below. If a market changes from perfectly competitve to a...
Question 18 Refer to the figure below. If a market changes from perfectly competitve to a monopoly, what happens to the price and output levels? Price MC MR Demand Quantity O A. They move from point A to point B. B. They move from point B to point C. C. They move from point C to point B. O D. They move from point A to point C. Question 20 Refer to the figure below. How much is the amount...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
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...
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 following graph shows the demand (D) for gas services in a particular town. The graph...
The following graph shows the demand (D) for gas services in a particular town. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local gas company, a natural monopolist. PRICE (Dollars per hundred cubic feet) P4 ATC P3 P2 P1 MC MR I 01 02 03 QUANTITY (Hundreds of cubic feet) Based solely on the graph, which of the following principal types of barriers to entry...
number 16 and 17 MC ATC -MR Cost B A Output Refer to the accompanying graph...
number 16 and 17
MC ATC -MR Cost B A Output Refer to the accompanying graph for a purely competitive firm. When the firm is in equilibrium in the short run, the amount of economic profit per unit is DH DE. EH. DB. Question 17 1.8 pts A purely competitive firm will be willing to produce even at a loss in the short run, as long as the loss is smaller than its marginal costs. price exceeds marginal costs. the...
Question 13 10 pts Use the following graph to answer the next question. MC ATC Р. P P P: MR 0 Q, Q₂Q, If the government regulated the pure monopoly and made it produce the level of output that would achieve allocative efficiency, what price and quantity of output levels would we observe in the short run? OP and Q3 OP, and Q1 OP and Q1 OP, and Q2
Graph Worksheet MC DI MR P4 ATC P3 P2 AVC PI 02 1. What is the price and quantity at the optimum level of production? Is this an economic profit, loss, or break-even? Should the firm produce? 2. If the industry model is monopolistic competition, what will happen to the industry? What will happen to the demand and marginal revenue curves for the individual firm? In the long run where will the demand curve be? Will the firm achieve productive...
MC ATC MC ATC -D MR MR 0 0 (b) MC ATC D MR (c) 65. Refer to the above diagrams, which pertain to monopolistically competitive firms. Short-run equilibrium entailing economic loss is shown by: A) diagram a only. B) diagram b only. C) diagram conly. D) both diagrams a and c. 66. Refer to the above diagrams, which pertain to monopolistically competitive firms. A short-run equilibrium entailing economic profits is shown by: A) diagram a only. B) diagram b...
Question 18 Refer to the figure below. If a market changes from perfectly competitve to a monopoly, what happens to the price and output levels? Price MC MR Demand Quantity O A. They move from point A to point B. B. They move from point B to point C. C. They move from point C to point B. O D. They move from point A to point C. Question 20 Refer to the figure below. How much is the amount...
MC ATC S AVC MR P 0 0 Q Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates The predicted long run adjustments in this industry might be offset by a decline in product demand an increase in resource prices a technological improvement in production methods O entry of new firms into the industry O O O O P MC ATC D MR 0 Refer to the accompanying...
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...
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 following graph shows the demand (D) for gas services in a particular town. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local gas company, a natural monopolist. PRICE (Dollars per hundred cubic feet) P4 ATC P3 P2 P1 MC MR I 01 02 03 QUANTITY (Hundreds of cubic feet) Based solely on the graph, which of the following principal types of barriers to entry...
number 16 and 17
MC ATC -MR Cost B A Output Refer to the accompanying graph for a purely competitive firm. When the firm is in equilibrium in the short run, the amount of economic profit per unit is DH DE. EH. DB. Question 17 1.8 pts A purely competitive firm will be willing to produce even at a loss in the short run, as long as the loss is smaller than its marginal costs. price exceeds marginal costs. the...
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