MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....

Question 1

Question

MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a. charge where ATC = MC. b. expect to make p

Add a comment Improve this question Transcribed image text

Answer

Answer #1

Answer :- b.expect to make profits in the long run

It produces at the point where Marginal Revenue equals to Marginal cost but charge the price expressed on the market demad curve for that quantity of production.

Because MR lies below the demand curve.this occurs because Marginal revenue is the demand P(q) plus the negative number .

The monopoly quantity equates Marginal Revenue and Marginal cost.but the monopoly price is higher than monopoly cost.

The monopoly profit from the increase in the price

There is a deadweight loss For the same reason that taxes create a deadweight loss:- the higher price of the monopoly prevents some unit from being traded that are valued more highly than the cost .

Under competitive conditions:- The supply equals to Margin cost the intersection of Margin cost and demand corresponds to the competitive outcome

Add a comment

Answer

Similar Homework Help Questions

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin...

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin strategy D) Coumot the output that would be produced if the would be produced if the industry was 17) 17) In the Cournot model the final level of output is industry was a monopoly, and is the output that perfectly competitive. A) equal to; less than...

Question 2

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin...

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin strategy D) Coumot the output that would be produced if the would be produced if the industry was 17) 17) In the Cournot model the final level of output is industry was a monopoly, and is the output that perfectly competitive. A) equal to; less than...

MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....

Homework Answers

Add Answer to:
MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....

Post as a guest

Earn Coins

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin...

MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....

Homework Answers

Add Answer to: MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....

Post as a guest

Earn Coins

16) . the same results as would exist if a 16) The oligopolistic model in which firms produce exactly called the model B) price monopolist controlled the entire industry is A) collusion Q maximin...

Add Answer to:
MC 0 Qo Q MR Using the image above, a single-price monopolist would Select one: a....