Homework Answers
Curve 1 is a J-shaped curve. The marginal cost curve is J-shaped curve.
Thus,
Curve 1 should be labeled MC
Curve 2 is a U-shaped curve. The average cost curve is U-shaped curve.
Thus,
Curve 2 should be labeled ATC.
A monopoly firm maxiizes profit when it produce that level of output corresponding to which MR curve intersects MC curve.
Thus,
Firms maximizes profit where MR curve intersects MC curve.
MR and MC curves are intersecting each other corresponding to output of 46 units.
The price corresponding to 46 units is $52 per unit (with respect to demand curve).
Thus,
The profit maximizing price for thr firm is $52; while the profit maximizing output for the firm is 46.
Calculate profit -
Profit = (Price - ATC) * Quantity
Profit = (52 - 64) * 46 = -552
Negative profit indicates loss.
Thus,
This Monopoly is earning approximately -500 in profit.
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Question 29 12 pts Below is the graph of a monopoly firm. Use the graph to...
a) b) c) The graph below depicts an industry that has been monopolized. 120 110 S...
a)
b)
c)
The graph below depicts an industry that has been monopolized. 120 110 S 100 90 80 PRICE ($) 70 60 50 — 40 30 20 D MR 1 1 - - - 20 30 50 60 70 40 OUTPUT If this market is in equilibrium, the price = and output = Is there any deadweight loss? (yes or no) If a monopoly raised the price to $80, the approximate output be . At this new price, would...
100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25...
100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25 35 45 50 1 60 55 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are fine) Question 27 2 pts Why should a firm never hire a worker when negative marginal returns exist? Hiring an additional worker will increase...
You have been hired as a consultant for the following monopoly firms. Treat each firm as...
You have been hired as a consultant for the following monopoly firms. Treat each firm as an individual. Thus each row represents one fim. You will need to use the MR =MC rules to make the recommendations to the firms. You will be using logic and critical thinking skills to make the suggestions Examine the information on MR, MC, Price, ATC, AVC and AFC to make a recommendation to each firm Remember firms want to max their total profits, they...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. 10 MC Profit ATC MR 0 1 2 3 45 6 7 89 10 Quantity (millons...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE, COST, MR (Dollars per month) 100 90 80 70 60 Demand 50 40 30 ATC 20 MC 10 MR 54 60 30 36 42 48 0...
Figure: A Profit-Maximizing Monopoly Firm Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing...
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
Need help with this problem. Where do i plot the monopoly outcome on the graph and...
Need help with this problem. Where do i plot the monopoly
outcome on the graph and also answering the following questions. I
will rate. thanks!
8. Natural monopoly analysis The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. On the following graph, use the...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), Its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE (Dollars per month) 200 180 ATC 160 140 120 100 Demand 80 60 40 MC 20 MR - 0 6 12 18 24 30 36 42...
Please solve both and show work. Use the graph below oh below to answer the next two questions. ATC MC $5.50 AVC $4....
Please solve both and show work.
Use the graph below oh below to answer the next two questions. ATC MC $5.50 AVC $4.50 -MR $3 25 40 50 Quantity 35. This profit-maximizing firm will produce units of output and have total revenue of a. 40; $170 b. 40; $220 c 5 0; $225 d. 50; $275 This profit-maximizing firm is: a. in long-run equilibrium. b. earning an economic profit of $40 in the short run. earning an economic profit of...
a)
b)
c)
The graph below depicts an industry that has been monopolized. 120 110 S 100 90 80 PRICE ($) 70 60 50 — 40 30 20 D MR 1 1 - - - 20 30 50 60 70 40 OUTPUT If this market is in equilibrium, the price = and output = Is there any deadweight loss? (yes or no) If a monopoly raised the price to $80, the approximate output be . At this new price, would...
100 90 1 2. BO 70 60 COST 50 40 30 20 10 D MR 25 35 45 50 1 60 55 OUTPUT Curve 1 should be labeled Curve 2 should be labeled Firms maximize profit where The profit maximizing price for the firm is while the profit maximizing output for the firm is (approximations are fine) Question 27 2 pts Why should a firm never hire a worker when negative marginal returns exist? Hiring an additional worker will increase...
You have been hired as a consultant for the following monopoly firms. Treat each firm as an individual. Thus each row represents one fim. You will need to use the MR =MC rules to make the recommendations to the firms. You will be using logic and critical thinking skills to make the suggestions Examine the information on MR, MC, Price, ATC, AVC and AFC to make a recommendation to each firm Remember firms want to max their total profits, they...
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. 10 MC Profit ATC MR 0 1 2 3 45 6 7 89 10 Quantity (millons...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE, COST, MR (Dollars per month) 100 90 80 70 60 Demand 50 40 30 ATC 20 MC 10 MR 54 60 30 36 42 48 0...
Figure: A Profit-Maximizing Monopoly Firm
Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly
Firm
(Figure: A Profit-Maximizing Monopoly Firm) Use Figure: A
Profit-Maximizing Monopoly Firm. This firm's cost per unit at its
profit-maximizing quantity is:
Select one:
a. $8.
b. $20.
c. $15.
d. $18.
We were unable to transcribe this imageP, MR MC, ATC $50 MC ATC 100 150 200 250 300 400 Quantity of output (per week) Reference: Ref 13-2 Figure: A Profit-Maximizing Monopoly Firm (Figure: A Profit-Maximizing Monopoly...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
Need help with this problem. Where do i plot the monopoly
outcome on the graph and also answering the following questions. I
will rate. thanks!
8. Natural monopoly analysis The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. On the following graph, use the...
Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), Its marginal cost curve (labeled MC), and its average total cost curve (labeled ATC). You can hover over the points on the graph to see their exact coordinates. PRICE (Dollars per month) 200 180 ATC 160 140 120 100 Demand 80 60 40 MC 20 MR - 0 6 12 18 24 30 36 42...
Please solve both and show work.
Use the graph below oh below to answer the next two questions. ATC MC $5.50 AVC $4.50 -MR $3 25 40 50 Quantity 35. This profit-maximizing firm will produce units of output and have total revenue of a. 40; $170 b. 40; $220 c 5 0; $225 d. 50; $275 This profit-maximizing firm is: a. in long-run equilibrium. b. earning an economic profit of $40 in the short run. earning an economic profit of...
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