Question

On the basis of the following information for a pure monopolist Product price $500 300 250 200 150 100 Output Total cost $250 260 290 350 4 5 480 700 27. How many units would the above profit-maximizing monopolist produce a) 1 b) 2 c) 3 d) 4 28. The above monopolist should set its price at: a) $300. b) $250. c) $200 d) $15 29. At its profit-maximizing output, the above monopolist: a) incurs a loss b) Earns an economic profit of $250 c) Earns a normal profit of $250 d) Earns an economic profit of $150. 30. If the above monopolist could engage in perfect price discrimination, it wa a) not alter its level of output. b) Increase output by 1 unit. c) Decrease output by 1 unit. d) Increase output by 2 units. 31. If the above monopolist could engage in perfect price discrimination, its to revenue would be: a) $600. b) $1250. c) $800. d) $1400. 32. Pure monopolists may earn economic profits in the long run because: a) of advertising. b) Marginal revenue is constant as sales increase. c) Of barriers to entry

Answer 1

Answer

Q   TC   MC   P   TR   MR   Profit
0   250       500   0       -250
1   260   10   300   300   300   40
2   290   30   150   300   0   10
3   350   60   200   600   300   250
4   480   130   150   600   0   120
5   800   320   100   500   -100   -300
Option First

earns profit of $250

Profit=TR-TC

thank you ....