A monopolist maximizes profits by choosing that output and price at which: (CHOSE ONE OF THE...
A monopolist maximizes profits by choosing that output and price at which: (CHOSE ONE OF THE FOLLOWING)
marginal cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that the price is greater than the average variable cost, and that the marginal cost is rising at the profit-maximizing output.
average variable cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that the price is less than the average variable cost, and that the marginal cost is falling at the profit-maximizing output.
average total cost is at the minimum point. This is given that the price is greater than the average variable cost, and that the marginal cost is rising at the profit-maximizing output.
marginal cost is equal to or comes as close as possible to (without exceeding) the marginal revenue. This is given that the price is less than the average variable cost, and that the marginal cost is falling at the profit-maximizing output.
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A monopolist maximizes profits by choosing that output and price
at which: (CHOSE ONE OF THE...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at that quantity because the demand curve is above the marginal-revenue curve. Profit equals mulitplied by the profit-maximizing quantity Price is and marginal cost average variable cost average cost marginal revenue. A monopolist maximizes profit by choosing the quantity at which marginal revenue equals Price is at that quantity because the demand curve is above the marginal-revenue curve. Profit equals the difference between the price...
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes pro...
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes profit minimizes average total cost minimizes average variable cost QUESTION 32 If marginal cost is rising average variable cost must be falling average fixed cost must be rising marginal product must be falling marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output is produced marginal cost is upward sloping...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
a.) When a monopolist chooses the output that maximizes profits, we know that MR - MC,...
a.) When a monopolist chooses the output that maximizes profits, we know that MR - MC, and also that P > MR. This is inefficient because The monopolist is the only producer in the market The monopolist fails to make transactions where the marginal benefit is greater than the marginal cost There are entry barriers The monopolistic is not minimizing costs b.) A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151...
Why will a profit-maximizing, single-price monopolist NOT produce the amount of output that maximizes its total...
Why will a profit-maximizing, single-price monopolist NOT produce the amount of output that maximizes its total revenue?
14. Refer to Figure 13-8. Which of the following statements is correct? a. Marginal cost is...
14. Refer to Figure 13-8. Which of the following statements is correct? a. Marginal cost is rising for quantities higher than D because marginal cost is higher than average total cost. b. Average variable cost is declining for quantities less than B because marginal cost is lower than average variable cost. c. Marginal cost is minimized at B because at that quantity, marginal cost equals average variable cost. d. All of the above are correct. 15. When marginal cost is...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram s hould contain short-run average cost, average variable cost, short-run marginal cost, and marginal rves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. (10 points) b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? (10 points) c. Why doesn't the abnormal profit of a...
Question 1A Graphically, a firm's profit-maximizing output can be found by identifying the intersection of the...
Question 1A Graphically, a firm's profit-maximizing output can be found by identifying the intersection of the rising part of the MC curve and the MR curve and making sure that the price of the product is greater than the average total cost. identifying the intersection of the non-falling part of the MC curve and the MR curve and making sure that the price of the product is greater than the average variable cost. identifying the intersection of the rising part...
Profits will always be maximized when total revenue equals total cost =T or F If marginal...
Profits will always be maximized when total revenue equals total cost =T or F If marginal revenue for an extra unit is positive, then selling the extra unit causes total revenue to rise. T or F Given a downward-sloping demand curve and positive marginal costs, profit-maximizing firms will always sell less output at higher prices than will revenue-maximizing firms. T or F Marginal profit is the difference between marginal revenue and marginal cost, and will always equal zero at the...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at that quantity because the demand curve is above the marginal-revenue curve. Profit equals mulitplied by the profit-maximizing quantity Price is and marginal cost average variable cost average cost marginal revenue. A monopolist maximizes profit by choosing the quantity at which marginal revenue equals Price is at that quantity because the demand curve is above the marginal-revenue curve. Profit equals the difference between the price...
QUESTION 31 An efficient scale of the firm is the quantity of output that maximizes marginal product maximizes profit minimizes average total cost minimizes average variable cost QUESTION 32 If marginal cost is rising average variable cost must be falling average fixed cost must be rising marginal product must be falling marginal product must be rising QUESTION 33 Diminishing marginal product suggests that additional units of output beccome less costly as more output is produced marginal cost is upward sloping...
14. Refer to Figure 13-8. Which of the following statements is correct? a. Marginal cost is rising for quantities higher than D because marginal cost is higher than average total cost. b. Average variable cost is declining for quantities less than B because marginal cost is lower than average variable cost. c. Marginal cost is minimized at B because at that quantity, marginal cost equals average variable cost. d. All of the above are correct. 15. When marginal cost is...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram s hould contain short-run average cost, average variable cost, short-run marginal cost, and marginal rves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. (10 points) b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? (10 points) c. Why doesn't the abnormal profit of a...
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