Homework Answers
Note: As per HOMEWORKLIB POLICY, only one question is allowed to answer at a time, so here first question is being answered :
OPTION C: $2000
EXPLANATION:
profit = total sales revenue - average total cost
= (2000 x $6) - (2000 x $5)
= $12000 - $10000
= $2000
Add Answer to:
Suppose MR = MC = $3 =MC=S3 at an output level of 2,000 units. If a...
NAME PRINT LAST NAME, FIRST NAME SECTIONE MONOPOLY is a pure monopoly when: İt is the...
NAME PRINT LAST NAME, FIRST NAME SECTIONE MONOPOLY is a pure monopoly when: İt is the only seller of a unique product and barriers to entry pneventother selen from entering the market in the long run it is the only seller of a product that has the market in the long run is unrestricted b. very few close substitutes and entry into C. there are only a few other very large firms selling similar products. d. it can sell all...
1. Assume that at a given level of output a monopoly firm has marginal revenue of...
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...
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...
Question 15: The efficient level for this firm is A. 30 units equalizing MR to MC....
Question 15:
The efficient level for this firm is
A. 30 units equalizing MR to MC.
B. 18 units minimizing the ATC.
C. 13 units where the MC is equal to zero.
D. None of the above.
Use Figure 2 to answer the following questions (Q13., Q14. and Q15.) MC ZMR P, costs P= $16 ATC 13 18 30 Figure 2- Production costs Q13. Which statement is true: A. The firm depicted by the graphic is competitive as the marginal...
With the aid of a diagram explain how a monopolist determines how much output to produce...
With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. (2) Briefly describe price discrimination of the first, second and third degrees. (3) Explain the difference between the demand curve facing a monopoly and the demand curve facing a perfectly competitive firm (4) Explain why under monopoly, price is greater than marginal revenue, while under perfect competition, price is equal to marginal revenue.
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b. increase competition. c. behave independently. d. maximize joint profit. 2. If a firm's product loses brand loyalty, then the demand curve will: a. Become less price elastic. b. Shift to the right. c. Become more price elastic. d. Shift to the left. 3. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case, the monopolist produces: a. Less...
1) 1) A single-price monopolist is currently producing an output level where P-520, MR = $13,...
1) 1) A single-price monopolist is currently producing an output level where P-520, MR = $13, ATC = $15, and MC = $14. In order to maximize profits, this monopolist should A) shut down B) decrease production and increase price. C) not change his output level, because he is currently at the profit-maximizing output level. D) increase production and reduce price. E) there is insufficient information to make a recommendation 2) 2) Consider a monopolist that is able to distinguish...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output where: Price of the good is equal to the marginal revenue of producing the last unit of the good Price of the good is equal to the marginal cost of producing the last unit of the good. Marginal revenue is equal to marginal cost. ATC is at the lowest point possible. An industry has eight firms with the following market shares: 5%, 20%,...
MLTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question (2...
MLTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question (2 points each). 1) Which of the following sellers is most able to perfectly price discriminate A) a clothing store C) a grocery supermarket B) the post office D) a college or university 2) When firms price discriminate they turn A) producer surplus; consumer surplus C) consumer surplus; profit into B) total cost; profit D) producer surplus; revenue 3) IE a firm faces a flat...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves for each market are QF15-PF OF and Qc are measured in 1000s of units, so you may get decimal values for Q. If P-$10 and Q-1, the profit of S10 that you calculate is actually $10,000). Qc 12.5 - 2 Pc The monopoly's cost function is C 5+3Q5+3(QF+Qc) First, we'll assume that the monopoly can only charge one price in both markets. a) Calculate...
NAME PRINT LAST NAME, FIRST NAME SECTIONE MONOPOLY is a pure monopoly when: İt is the only seller of a unique product and barriers to entry pneventother selen from entering the market in the long run it is the only seller of a product that has the market in the long run is unrestricted b. very few close substitutes and entry into C. there are only a few other very large firms selling similar products. d. it can sell all...
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...
Question 15:
The efficient level for this firm is
A. 30 units equalizing MR to MC.
B. 18 units minimizing the ATC.
C. 13 units where the MC is equal to zero.
D. None of the above.
Use Figure 2 to answer the following questions (Q13., Q14. and Q15.) MC ZMR P, costs P= $16 ATC 13 18 30 Figure 2- Production costs Q13. Which statement is true: A. The firm depicted by the graphic is competitive as the marginal...
1) 1) A single-price monopolist is currently producing an output level where P-520, MR = $13, ATC = $15, and MC = $14. In order to maximize profits, this monopolist should A) shut down B) decrease production and increase price. C) not change his output level, because he is currently at the profit-maximizing output level. D) increase production and reduce price. E) there is insufficient information to make a recommendation 2) 2) Consider a monopolist that is able to distinguish...
A monopolistically competitive firm that wishes to maximize profits will choose to produce that level of output where: Price of the good is equal to the marginal revenue of producing the last unit of the good Price of the good is equal to the marginal cost of producing the last unit of the good. Marginal revenue is equal to marginal cost. ATC is at the lowest point possible. An industry has eight firms with the following market shares: 5%, 20%,...
MLTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question (2 points each). 1) Which of the following sellers is most able to perfectly price discriminate A) a clothing store C) a grocery supermarket B) the post office D) a college or university 2) When firms price discriminate they turn A) producer surplus; consumer surplus C) consumer surplus; profit into B) total cost; profit D) producer surplus; revenue 3) IE a firm faces a flat...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves for each market are QF15-PF OF and Qc are measured in 1000s of units, so you may get decimal values for Q. If P-$10 and Q-1, the profit of S10 that you calculate is actually $10,000). Qc 12.5 - 2 Pc The monopoly's cost function is C 5+3Q5+3(QF+Qc) First, we'll assume that the monopoly can only charge one price in both markets. a) Calculate...
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