Homework Answers
1) d
Monopoly has downward sloping demand curve that disables it to earn unlimited profit.
4)d.
all of the above
5) d
There is no free entry and exit in monopoly.
6) d. $980
Monopoly maximizes profit at MR= MC where it produces 70 units and charge 14
Total revenue = 70*14= 980
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QUESTION 1 A monopoly O a takes the market price as given and earns small but...
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1. Assume that at a given level of output a monopoly firm has marginal revenue of $9, its ATC is $9, and marginal cost is $7. If this firm were to incrementally increase its output then A) profit will increase B) price will increase C) profit w decrease D) price will equal marginal revenue. 2. For a monopoly firm, if AVC = $20, P = $21, and ATC = $22, then the firm should: A) increase production. B) produce at...
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question...
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Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 –...
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PLZ HELP???? QUESTION 7 A monopolist can usually keep price equal to marginal revenue by lowering...
PLZ HELP???? QUESTION 7 A monopolist can usually keep price
equal to marginal revenue by lowering the price on the last unit
sold only. is constrained in its pricing decisions by the demand
curve it faces. faces a demand curve that is more elastic than the
demand curve for the industry. can charge whatever price it wants
because it is the only firm producing the good
10.Shortly after the turn of the century, U.S. Steel owned most
of the iron...
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Question 6 (1 point) Consider a monopolist which sells output in two markets, the home market...
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1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....
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A monopolist faces a market demand curve given by
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plz be clear IUNTICWUIK. N55IGITICUL IUI IVIUuue o Score: 0 of 1 pt 5 of 1...
plz be clear
IUNTICWUIK. N55IGITICUL IUI IVIUuue o Score: 0 of 1 pt 5 of 1 12.3 Review Quiz 1 (static) Why does a single-price monopoly produce a smaller output and charge more than the price that would prevail if the market were perfectly competitive? A single-price monopoly produces a smaller output and charges more than the price that would prevail if the market were perfectly competitive because O A. the demand curve is downward sloping and a single-price monopoly...
Suppose a dealer has a local monopoly in selling good X. It pays w to the...
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1. Assume that at a given level of output a monopoly firm has marginal revenue of $9, its ATC is $9, and marginal cost is $7. If this firm were to incrementally increase its output then A) profit will increase B) price will increase C) profit w decrease D) price will equal marginal revenue. 2. For a monopoly firm, if AVC = $20, P = $21, and ATC = $22, then the firm should: A) increase production. B) produce at...
PART III COVERS CLO 5 uan 4 marks Question 1 Choose the correct answer. Each question carries 0.5 mark 1. If a firm can change market prices by altering its output, then it A. Has market power. B. Faces a flat demand curve. C. Is a price taker D. Engages in marginal cost pricing. 2. If economic profits are earned in a competitive market, then over time: A. Additional firms will enter the market. B. The market supply curve will...
PLZ HELP???? QUESTION 7 A monopolist can usually keep price
equal to marginal revenue by lowering the price on the last unit
sold only. is constrained in its pricing decisions by the demand
curve it faces. faces a demand curve that is more elastic than the
demand curve for the industry. can charge whatever price it wants
because it is the only firm producing the good
10.Shortly after the turn of the century, U.S. Steel owned most
of the iron...
Question 6 (1 point) Consider a monopolist which sells output in two markets, the home market and the foreign market. The monopolist faces a linear demand curve of P1 - 20 - Q1 in the home market and P2 - 40-202 in the foreign market. The monopolists total cost is (Q=1500+q? What prices the monopolist charges in the home and the foreign market respectively? $11. $21. $12, S16 $6. $18 $18,528. none of the above Question 5 (1 point) A...
plz be clear
IUNTICWUIK. N55IGITICUL IUI IVIUuue o Score: 0 of 1 pt 5 of 1 12.3 Review Quiz 1 (static) Why does a single-price monopoly produce a smaller output and charge more than the price that would prevail if the market were perfectly competitive? A single-price monopoly produces a smaller output and charges more than the price that would prevail if the market were perfectly competitive because O A. the demand curve is downward sloping and a single-price monopoly...
Suppose a dealer has a local monopoly in selling good X. It pays w to the manufacturer for each unit of X that it sells, and charges each customer p. The demand curve that the dealer faces is best described by the linear function Q-30-p, where the price is in units of thousands of dollars. a. What is the profit-maximizing price for the dealer to set? At this price, how many units of X will the dealer sell and what...
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