Homework Answers
Ans-16) (c) For all the levels of output less than Oq2 .
Reason- if we have to plot a demand curve out of the total revenue curve then it will be a downward sloping curve from left to right touching both y and x axis. The point where TR is maximum is at Oq2 which will be the midpoint of the demand curve. We can check the elasticity by geometric method which says that elasticity = lower segment/upper segment. The Upper segment will show the area which is more elastic. Hence area prior to midpoint i.e oq2 is elastic.
Area between Oq2 to Oq4 = less elastic.
Ans-17)(c) Marginal revenue will be zero at Oq2.
Reason - BECAUSE when MR= 0 , THE total revenue is maximum and constant. When MR becomes negative. the total revenue begins to fall.
Ans-18)(a) at Oq2 .
Reason- A profit seeking monopolist will always produce at oq2 as here the total revenue is maximum and also tghe profit will be maximum.
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The following diagram is for a monopolistic competitor: Total revenue o e- Output 92 43 44...
two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue...
two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue is the same as the market price. b. social surplus will be maximized. O c. the market price will be climater than marginal cost. Od they will produce the same amount of output as in perfect competition. If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long run resource mobility, then...
Figure 01. Cost and Demand for a Monopolistic Competitor Price $15.00 --- $10.00 --- — АС MC Imre 11 Demand curve...
Figure 01. Cost and Demand for a Monopolistic Competitor Price $15.00 --- $10.00 --- — АС MC Imre 11 Demand curve facing each firm, de 324250 Quantity Question 02. Using Figure 01, the total cost of producing the profit-maximizing output for each firm is: A. $320. B. $480 C. $420 D. $500 Question 03. Using Figure 01, the profits at the profit-maximizing output for each firm is: A. $320. B. $480 C. $160. D. $420. Question 04. Suppose that at...
30. The change in total revenue that results fr A. Marginal cost. B, Marginal revenue C....
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Show work pretty please. 30. Average total cost a. b. c. d. e. increases as output...
Show work pretty please.
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If a monopolist practices perfect price discrimination, then it will have a. a greater total revenue and sell a greater output than if it were not practicing price discrimination. b. a smaller total revenue and sell a smaller output than if it were not practicing price discrimination. c. the same total revenue but sell a larger output than if it were not practicing price discrimination. d. the same total revenue but sell a smaller output than if it were not...
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28. Firms will continue to enter a competitive industry until, in the LR, a. firms...
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1.) What is the main difference between a competitive firm and a monopoly? a. A competitive...
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two price-taking firms compete by setting quantities of output, then Select one: O a marginal revenue is the same as the market price. b. social surplus will be maximized. O c. the market price will be climater than marginal cost. Od they will produce the same amount of output as in perfect competition. If a firm sells its output on a market that is characterized by many sellers and buyers, a differentiated product, and unlimited long run resource mobility, then...
Figure 01. Cost and Demand for a Monopolistic Competitor Price $15.00 --- $10.00 --- — АС MC Imre 11 Demand curve facing each firm, de 324250 Quantity Question 02. Using Figure 01, the total cost of producing the profit-maximizing output for each firm is: A. $320. B. $480 C. $420 D. $500 Question 03. Using Figure 01, the profits at the profit-maximizing output for each firm is: A. $320. B. $480 C. $160. D. $420. Question 04. Suppose that at...
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Show work pretty please.
30. Average total cost a. b. c. d. e. increases as output increases. decreases as output increases. increases if marginal cost is increasing increases if marginal cost is greater than average total cost. both c and d 31. Amonopolist which suffers losses in the short run will continue to operate as long as total revenue covers fixed cost. raise price in order to eliminate losses exit in the long run if there is no plant size...
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If a monopolist practices perfect price discrimination, then it will have a. a greater total revenue and sell a greater output than if it were not practicing price discrimination. b. a smaller total revenue and sell a smaller output than if it were not practicing price discrimination. c. the same total revenue but sell a larger output than if it were not practicing price discrimination. d. the same total revenue but sell a smaller output than if it were not...
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