Homework Answers
In perfect competition, producer charge a price where MR = MC while in monopoly, producer charges a price where MR = MC and stretch that price till it touches AR curve. In comparison, they sell less amount of goods in the market from competitive market. As monopolist charge higher price than perfect competitive producer, it will help them covering the cost of innovation easily and in less time possible. Also they are the single entity to sell that product and have no competition, all consumers will purchase from them which will also cover their cost of innovation in less time possible.
The upper diagram is of perfect competitive market while below diagram is of monopoly.
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18. Explain why a monopolist can possibly have incentives to innovate when it makes its...
I know that these have answers but I do not believe they are all correct. I also knew you can only answer 4 questions. S...
I know that these have answers but I do not believe they are all
correct. I also knew you can only answer 4 questions. So if one of
them is already correct could you answer the ones that are
wrong?
9) If a regulated monopolist has a loss when the the government should subsidize the firm. government forces it to price at its marginal cost, the firm should exit the industry. the firm should minimize its losses. the government should...
7. How is monopoly different from perfect competition? 8. What is a barrier to entry? Give...
7. How is monopoly different from perfect competition? 8. What is a barrier to entry? Give some examples. 9. What is a natural monopoly? 11. What is predatory pricing? 14. In what sense is a natural monopoly “natural”? 15. How is the demand curve perceived by a perfectly competitive firm different from the demand curve perceived by a monopolist? 16. How does the demand curve perceived by a monopolist compare with the market demand curve? 17. Is a monopolist a...
ID: A 9. When a monopolist is able to sell its product at different prices, it...
ID: A 9. When a monopolist is able to sell its product at different prices, it is engaging in a quality adjusted pricing. b. price differentiation. c. price discrimination. d. distribution pricing. 10. A natural monopoly occurs when a. the product is sold in its natural state (such as water or diamonds). b. there are economies of scale over the relevant range of output. c. the firm is characterized by a rising marginal cost curve. d. production requires the use...
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...
can you explain why its right 1. A rational seller will sell another unit of output...
can you explain why its right
1. A rational seller will sell another unit of output if the cost of making another unit is less than (or to) the revenue gained from selling another unit 2. Your neighbor has hired you to take care his dog, it takes one hour to do the work. You work 8 hours a day and make 10 dollars an hour, how much are you going to . charge? 3. Which of the following best...
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...
1,6. A firm finds that by producing and selling the last unit of its commodity, the...
1,6. A firm finds that by producing and selling the last unit of its commodity, the marginal revenue it earns is R15 and the marginal cost it incurs is R14. In order to maximise profits, the firm should A reduce its output irrespective of the type of firm it is. B. increase its output irrespective of the type of firm it is. C. reduce its output if it is a perfectly competitive firm, but not necessarily if it is a...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...
1.) What is the main difference between a competitive firm and a monopoly? a. A competitive firm owns a key resource, but a monopoly firm does not. b. A competitive firm is a price taker, and a monopoly is a price maker. c. A competitive firm produces output at a lower cost than a monopoly firm. d. A competitive firm is subject to government regulations, but a monopoly firm is not. 2.) What is the main social problem caused by...
Total Points 100 pts. Il credit will be given only when () your answers are correct...
Total Points 100 pts. Il credit will be given only when () your answers are correct and (a) you explain the steps or reasoning behind your answers. . Due date: Thursday, Dec a7th 2018, in class and in hard copy cost as follow: TC 0.Q2+ Q +10 and MC -o.2 Q +1. It faces the demand curve Q 35- 5P. (35 points) a) What are the price, output, and profit for this monopolist? b) Carefully draw the diagram that illustrates...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
I know that these have answers but I do not believe they are all
correct. I also knew you can only answer 4 questions. So if one of
them is already correct could you answer the ones that are
wrong?
9) If a regulated monopolist has a loss when the the government should subsidize the firm. government forces it to price at its marginal cost, the firm should exit the industry. the firm should minimize its losses. the government should...
ID: A 9. When a monopolist is able to sell its product at different prices, it is engaging in a quality adjusted pricing. b. price differentiation. c. price discrimination. d. distribution pricing. 10. A natural monopoly occurs when a. the product is sold in its natural state (such as water or diamonds). b. there are economies of scale over the relevant range of output. c. the firm is characterized by a rising marginal cost curve. d. production requires the use...
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...
can you explain why its right
1. A rational seller will sell another unit of output if the cost of making another unit is less than (or to) the revenue gained from selling another unit 2. Your neighbor has hired you to take care his dog, it takes one hour to do the work. You work 8 hours a day and make 10 dollars an hour, how much are you going to . charge? 3. Which of the following best...
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...
1,6. A firm finds that by producing and selling the last unit of its commodity, the marginal revenue it earns is R15 and the marginal cost it incurs is R14. In order to maximise profits, the firm should A reduce its output irrespective of the type of firm it is. B. increase its output irrespective of the type of firm it is. C. reduce its output if it is a perfectly competitive firm, but not necessarily if it is a...
Total Points 100 pts. Il credit will be given only when () your answers are correct and (a) you explain the steps or reasoning behind your answers. . Due date: Thursday, Dec a7th 2018, in class and in hard copy cost as follow: TC 0.Q2+ Q +10 and MC -o.2 Q +1. It faces the demand curve Q 35- 5P. (35 points) a) What are the price, output, and profit for this monopolist? b) Carefully draw the diagram that illustrates...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
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