Homework Answers
Ans1) the correct option is b) large fixed costs relative to variable costs
Natural monopoly is most likely to occur in markets where fixed costs are large relative to variable costs.
Ans2) the correct option is d) all of the above
Add Answer to:
Question 1 1 pts A natural monopoly is characterised by: large marginal costs relative to fixed...
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, ...
Hi, i need help with this question
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, C(Q,N) 1,000 +4N+3Q, where N is the number of households, and Q is the cubic inches of water consumed per day. There are 50 high type consumers each with demand, and 30 low type consumers with demand, Each q is cubic inches consumed per household per day. Start with the assumption that the monopolist is profit...
Question 1 1 pts Suppose a monopolist has constant marginal costs, as depicted below. What will...
Question 1 1 pts Suppose a monopolist has constant marginal costs, as depicted below. What will be the deadweight loss to society of having a monopoly, rather than a perfectly competitive industry, make this product? LRAC = LAMC 400 Quantity O $C + $R + $D $D $c OSR
? Book Air 4) (10 points) Suppose a natural monopolist is faced with high fixed costs...
? Book Air 4) (10 points) Suppose a natural monopolist is faced with high fixed costs an marginal costs. Suppose this natural monopolist is regulated to s average total cost. Show the regulated monopoly price an quantity in a graph extent of the consumer surplus. et a price that equals the monopoly ow. How much are the economic profits? Show in your graph the
Suppose that there are no variable costs. Think about what this means. Marginal cost is the...
Suppose that there are no variable costs. Think about what this means. Marginal cost is the additional cost of producing one more unit of a good. 1) If there are only fixed costs, then what is the additional cost of producing an additional unit? 2) If a monopolist is running a business with only fixed costs what is the price elasticity of demand at the profit-maximizing level of output? 3) show that all monopolists facing positive marginal cost produce where...
Suppose that there are no variable costs. Think about what this means. Marginal cost is the...
Suppose that there are no variable costs. Think about what this means. Marginal cost is the additional cost of producing one more unit of a good. 1) If there are only fixed costs, then what is the additional cost of producing an additional unit? 2) If a monopolist is running a business with only fixed costs what is price elasticity of demand at the profit maximizing level of output? 3) show that all monopolists facing positive marginal cost produce where...
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same...
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same outcome as public ownership create zero economic profits for the comp reduce deadweight loss as much as possible All of these statements are true any QUESTION 9 The government should set the p rice for natural m onopolies at their: average total cost. marginal cost. average variable cost. fixed cost. QUESTION 10 The long run outcome of the monopolistically competitive firm: occurs where price...
U Question 7 1 pts The figure below depicts the demand, marginal revenue, and marginal cost...
U Question 7 1 pts The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit-maximizing monopolist. Price $40 30 20 Marginal Cost Demand 10 Marginal Revenue O 100 200 300 400 Quantity Refer to the figure above. If there are no fixed costs of production, maximized monopoly profit for a single-price monopolist that can not price discriminate equals O $500. $1,000. O $2,000. $4,000.
30. The B B and H C C and H D. D and H . The...
30. The B B and H C C and H D. D and H . The profit earned by the profie-maximiring monopolist is repesented by the A. ABGH BDEG C. BCFG D. CDEF B. 32. The profit per unit is: AF-G B. E-F CE-G D. G-H 33. The monopolist's supply curve is the marginal-cost curve above average variable cost A. Tnue B. False 34. Government regulations to force a natural monopoly to charge a price equal to its marginal cost...
Question 7 (2 points) Figure 77-1: Natural Monopoly — МС Q Output (Figure 77-1: Natural Monopoly)...
Question 7 (2 points) Figure 77-1: Natural Monopoly — МС Q Output (Figure 77-1: Natural Monopoly) The figure above shows an unregulated natural monopoly. Which of the following identifies the area of deadweight loss in this market? O a (P.-P.J*Q, - Qm Ob (Pm - ATC)Qm OC (Pm-P.)*Qm Od 1/2*(Pm-P)*(Qc - Om Oe P.-PJQc - Q:) of the natural monopoly. Question 8 (2 points) One regulatory option for natural monopolles is for the government to operate the firm. This is...
QUESTION 42 If there are large fixed costs due to research and development, perfect competition does...
QUESTION 42 If there are large fixed costs due to research and development, perfect competition does not generate new ideas because o a. the government does not adequately fund innovation b. with monopolistic competition, prices are equal to the marginal cost minus a markup c. firms need to recoup these costs through higher profits O d. with monopolistic competition, prices are equal to the marginal cost O e. perfectly competitive firms always set prices lower than the marginal cost QUESTION...
Hi, i need help with this question
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, C(Q,N) 1,000 +4N+3Q, where N is the number of households, and Q is the cubic inches of water consumed per day. There are 50 high type consumers each with demand, and 30 low type consumers with demand, Each q is cubic inches consumed per household per day. Start with the assumption that the monopolist is profit...
Question 1 1 pts Suppose a monopolist has constant marginal costs, as depicted below. What will be the deadweight loss to society of having a monopoly, rather than a perfectly competitive industry, make this product? LRAC = LAMC 400 Quantity O $C + $R + $D $D $c OSR
? Book Air 4) (10 points) Suppose a natural monopolist is faced with high fixed costs an marginal costs. Suppose this natural monopolist is regulated to s average total cost. Show the regulated monopoly price an quantity in a graph extent of the consumer surplus. et a price that equals the monopoly ow. How much are the economic profits? Show in your graph the
QUESTION 8 In theory, placing a price control on a natural monopoly should have the same outcome as public ownership create zero economic profits for the comp reduce deadweight loss as much as possible All of these statements are true any QUESTION 9 The government should set the p rice for natural m onopolies at their: average total cost. marginal cost. average variable cost. fixed cost. QUESTION 10 The long run outcome of the monopolistically competitive firm: occurs where price...
U Question 7 1 pts The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit-maximizing monopolist. Price $40 30 20 Marginal Cost Demand 10 Marginal Revenue O 100 200 300 400 Quantity Refer to the figure above. If there are no fixed costs of production, maximized monopoly profit for a single-price monopolist that can not price discriminate equals O $500. $1,000. O $2,000. $4,000.
30. The B B and H C C and H D. D and H . The profit earned by the profie-maximiring monopolist is repesented by the A. ABGH BDEG C. BCFG D. CDEF B. 32. The profit per unit is: AF-G B. E-F CE-G D. G-H 33. The monopolist's supply curve is the marginal-cost curve above average variable cost A. Tnue B. False 34. Government regulations to force a natural monopoly to charge a price equal to its marginal cost...
Question 7 (2 points) Figure 77-1: Natural Monopoly — МС Q Output (Figure 77-1: Natural Monopoly) The figure above shows an unregulated natural monopoly. Which of the following identifies the area of deadweight loss in this market? O a (P.-P.J*Q, - Qm Ob (Pm - ATC)Qm OC (Pm-P.)*Qm Od 1/2*(Pm-P)*(Qc - Om Oe P.-PJQc - Q:) of the natural monopoly. Question 8 (2 points) One regulatory option for natural monopolles is for the government to operate the firm. This is...
QUESTION 42 If there are large fixed costs due to research and development, perfect competition does not generate new ideas because o a. the government does not adequately fund innovation b. with monopolistic competition, prices are equal to the marginal cost minus a markup c. firms need to recoup these costs through higher profits O d. with monopolistic competition, prices are equal to the marginal cost O e. perfectly competitive firms always set prices lower than the marginal cost QUESTION...
Most questions answered within 3 hours.
-
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 1 hour ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 2 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 2 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 6 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 6 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 6 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 6 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 6 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 6 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 6 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 6 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 6 hours ago