UESTION 26
-
On the graph, what is the long-run profit earned by the monopolist?
AEFB
AJC
AFB
This monopolist earns long-run losses.
Homework Answers
Answer :- AEFB
Explanation :-
=> in the given figure we see that average total cost is above E point. so Upto E point the firm will realise the profits.
=> so profit maximize point is 'H 'and the average variable cost covers at point of 'G'. so after upto point of 'E' the firm make profit which is area of 'AEFB'
Add Answer to:
UESTION 26
On the graph, what is the long-run profit earned by the
monopolist?
AEFB
AJC...
Remaining Time: 45 minutes, 53 seconds. Question Completion Status: QUESTION 26 Figure 22.4 Dollars/unit Α. E...
Remaining Time: 45 minutes, 53 seconds. Question Completion Status: QUESTION 26 Figure 22.4 Dollars/unit Α. E Marginal Cost Average Total Cost M F B J Average Variable Cost 972 c D H Demand 0 I KL N Quantity (units/week) Marginal Revenue On the graph, what is the long-run profit earned by the monopolist? O AEFB AJC CAFB This monopolist earns long-run losses. QUESTION 27
QUESTION 27 On the graph, what is the status of this firm? It is earning economic...
QUESTION 27
On the graph, what is the status of this firm?
It is earning economic profits and should stay open in the long
run
It is earning quasi-rents and should stay open in the short-run
but not the long-run
It is earning quasi-rents and should stay open in the short- and
long-run.
It is not earning economic profit or quasi-rent and should shut
down immediately.
Figure 22.4 Dollars/unit Marginal Cost A E Average Total Cost M F B J...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at that quantity because the demand curve is above the marginal-revenue curve. Profit equals mulitplied by the profit-maximizing quantity Price is and marginal cost average variable cost average cost marginal revenue. A monopolist maximizes profit by choosing the quantity at which marginal revenue equals Price is at that quantity because the demand curve is above the marginal-revenue curve. Profit equals the difference between the price...
Question 46 2p Which of the following is true of the profit, earned by a monopolist?...
Question 46 2p Which of the following is true of the profit, earned by a monopolist? Profit is maximized along the inelastic portion of the demand curve. Normal profit is ensured where price is equal to average total cost. Normal profit is ensured where marginal cost exceeds average revenue. Economic profit is made where average variable cost equals marginal revenue. Profit is maximized where marginal revenue exceeds marginal cost. Question 47 2 pts A non-price discriminating monopolist's demand curve: is...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram should contain short-run average cost, average variable cost, short-run marginal cost, and marginal revenue curves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? c. Why doesn't the abnormal profit of a monopolist, unlike that of...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram s hould contain short-run average cost, average variable cost, short-run marginal cost, and marginal rves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. (10 points) b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? (10 points) c. Why doesn't the abnormal profit of a...
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...
18. How short-run profit or losses induce entry or exit
18. How short-run profit or losses induce entry or exitFantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal-revenue curve (MR), marginal-cost curve (MC), and average-total-cost curve (ATC).Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.Given the profit-maximizing choice...
The graph contains information on the long-run equilibrium situation faced by Patty's Frozen Pizzas. Use the...
The graph contains information on the long-run equilibrium situation faced by Patty's Frozen Pizzas. Use the information to answer the questions Notice that quantities in the graph are in thousands. Determine Patty's profit-maximizing price and profit-maximizing quantity. Price $10- Average total cost Marginal cos 4 profit-maximizing price: S Demand profit-maximizing quantity: pizzas Marginal revenue 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizza) At what level of output is Patty's average total cost minimized?...
Remaining Time: 45 minutes, 53 seconds. Question Completion Status: QUESTION 26 Figure 22.4 Dollars/unit Α. E Marginal Cost Average Total Cost M F B J Average Variable Cost 972 c D H Demand 0 I KL N Quantity (units/week) Marginal Revenue On the graph, what is the long-run profit earned by the monopolist? O AEFB AJC CAFB This monopolist earns long-run losses. QUESTION 27
QUESTION 27
On the graph, what is the status of this firm?
It is earning economic profits and should stay open in the long
run
It is earning quasi-rents and should stay open in the short-run
but not the long-run
It is earning quasi-rents and should stay open in the short- and
long-run.
It is not earning economic profit or quasi-rent and should shut
down immediately.
Figure 22.4 Dollars/unit Marginal Cost A E Average Total Cost M F B J...
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at that quantity because the demand curve is above the marginal-revenue curve. Profit equals mulitplied by the profit-maximizing quantity Price is and marginal cost average variable cost average cost marginal revenue. A monopolist maximizes profit by choosing the quantity at which marginal revenue equals Price is at that quantity because the demand curve is above the marginal-revenue curve. Profit equals the difference between the price...
Question 46 2p Which of the following is true of the profit, earned by a monopolist? Profit is maximized along the inelastic portion of the demand curve. Normal profit is ensured where price is equal to average total cost. Normal profit is ensured where marginal cost exceeds average revenue. Economic profit is made where average variable cost equals marginal revenue. Profit is maximized where marginal revenue exceeds marginal cost. Question 47 2 pts A non-price discriminating monopolist's demand curve: is...
a. Draw a diagram illustrating the profit maximizing output for the monopolist with abnormal profit. The diagram s hould contain short-run average cost, average variable cost, short-run marginal cost, and marginal rves and shade area that represents abnormal profit. Make your diagram large and label all curves, axes, and points. (10 points) b. Why, in the case of a monopolist, is marginal revenue at any output less than output price? (10 points) c. Why doesn't the abnormal profit of a...
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...
The graph contains information on the long-run equilibrium situation faced by Patty's Frozen Pizzas. Use the information to answer the questions Notice that quantities in the graph are in thousands. Determine Patty's profit-maximizing price and profit-maximizing quantity. Price $10- Average total cost Marginal cos 4 profit-maximizing price: S Demand profit-maximizing quantity: pizzas Marginal revenue 0 10 20 30 40 50 60 70 80 90 100 Quantity (thousands of pizza) At what level of output is Patty's average total cost minimized?...
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