ANSWER:
The correct answer is option b that is market demand curve such that the price that monopolist gets for an additional output must fall.
Amonopolist faces a downward sloping demand curve that is equal to which of the following? o...
Suppose a firm has market power and faces a downward-sloping demand curve for its product, and its marginal cost curve is upward sloping. If the firm reduces its price, then A. producer surplus increases due to new buyers, but the producer surplus from existing customers declines due to the lower price. B. the sum of producer and consumer surplus remains the same, but surplus value is transferred from the producer to consumers. C. the change in producer surplus is transferred...
1) The Fox Company has market power (faces a downward-sloping demand curve). The industry's total cost is C= 30Q +1.5Q^2 and its inverse demand is P = 300 - 3Q. *What is the firm's profit-maximizing output and price? *If the firm's inverse demand changes to P = 240 - 2Q and its total costs remains unchanged, what is the firm's profit-maximizing level of output and price? State how this compares to the answer for the first bullet point. *Sketch a...
57. A profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -3. The firm finds it optimal to charge a price of $12 for its output. What is its marginal cost at this level of output?
A monopolist has market power because it O Is a price taker. Faces a downward-sloping demand curve for its own output. O Can raise price as much as it wishes and not lose any customers. 0 Is regulated by the government. none of the Answers are correct.
Question 1 Since a monopolist faces a downward sloping demand curve, the only way it can increase revenue is to a raise its price b. reduce its price c. produce more product
DI Question 3 1 pts A monopoly's demand curve is O vertical. O downward-sloping. O horizontal. O upward-sloping D Question 4 1 pts A monopolist is able to maximize its profits by D setting the price at the level that will maximize its pfer unit proft. setting output at MR - MC and setting price at the demand curve's highest point. producing output where MR - MC and charging the price corresponding to that output level on the demand curve...
i) A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal costs that increase with output. Show, on a single diagram, how its profit maximisation decision can be represented both in terms of a feasible set optimisation and its marginal revenue and marginal cost. Why is there a deadweight loss in this case? (5) ii) Now assume the firm is a typical firm in a perfectly competitive market. Show the firm's optimal choice alongside the...
If a profit-maximizing monopolist faces a downward-sloping market demand curve, what do we know?What can the marginal product of labour be defined as?
3. Suppose that Bob's widgets faces a downward sloping demand curve given by Q 100-4P. If Bob's marginal cost of production is $2 per unit, what is his profit maximizing level of output? His profit maximizing price?
14) If a firm faces a downward-sloping demand curve a. it will always make a profit. b. it can control both price and quantity sold. c. it must reduce its price to sell more output. d. the demand for its product must be inelastic.