Homework Answers
Answer:
At Equilibrium: MR = MC
So Quantity = V units
Price = J
ATC between G and H but less than J
Since at profit-maximising level of output, the price is greater than ATC.
Hence firm will earn positive profit of = (P-ATC)Q
= (P>ATC)Q
So At Equilibrium the firm will be earning positive profits
Correct option: B] positive profits
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QUESTION 32 Use the following graph for a profit-maximizing monopolist to ans ATC MR V X...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual...
1. Draw two graphs. On the first, show the short-run profit maximizing output of an individual firm earning an economic profit, including MR, MC, AVC, and ATC. On the second, show the short-run market equilibrium price and quantity. Explain how the industry supply curve and the market equilibrium price and quantity are determined. 2. What is the relationship between the price on the two graphs? Why does this relationship exist? 3. Explain why a firm in a perfectly competitive industry...
The monopolistically competitive firm represented in the graph is in: MC ATC $10 $8.50 $2 MR...
The monopolistically competitive firm represented in the graph is in: MC ATC $10 $8.50 $2 MR O long-run equilibrium since it is earning zero profit. O short-run equilibrium since it is earning zero proft. O short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit O long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point...
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
draw a graph depicting the MR, MC and demand curves for the monopolist. label the profit-maximizing...
draw a graph depicting the MR, MC and demand curves for the monopolist. label the profit-maximizing quantity of output and the price the monopolist will charge
Use the MR/MC approach and the appropriate graph to show the profit maximizing price and quantity...
Use the MR/MC approach and the appropriate graph to show the profit maximizing price and quantity for a firm in monopolistic competition. Assume that the firm is making economic profits in the short-run. Explain what happens to the economic profits in the long-run.
The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and...
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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...
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The...
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The graph above shows the demand curve (D), marginal cost curve (MC), average cost curve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer: b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
Refer to the graph below: Untitled.png a. What is the profit-maximizing quantity and what price will...
Refer to the graph below: Untitled.png a. What is the profit-maximizing quantity and what price will the monopolist charge? a. What is the total revenue at the profit-maximizing output level? b. What is the total cost at the profit-maximizing output level? c. What is the profit? d. What is the profit per unit (average profit) at the profit-maximizing output level? e. If this industry was organized as a perfectly competitive industry, what would be the profit- maximizing price and quantity?...
find where e point, the atc curve, and the profit square is supposed to be Question...
find where e point, the atc curve, and the profit square is
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Question 8 of 12 > 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...
The monopolistically competitive firm represented in the graph is in: MC ATC $10 $8.50 $2 MR O long-run equilibrium since it is earning zero profit. O short-run equilibrium since it is earning zero proft. O short-run equilibrium, but not long-run equilibrium since it is earning positive economic profit O long-run equilibrium, but not short-run equilibrium since it is earning positive economic profit
A firm's ATC, AVC, MR, and MC curves are shown in the graph below. Profit-Maximizing Point Profit-Maximizing Point Economic Profit (shaded region) 54+ 48 IMR Cost and revenues AVC HHHHHHHHHHHHHHHHHHHHO 044 Reset 8 12 16 20 24 28 32 36 40 44 48 Output a) Draw the short-run profit-maximizing point and the economic profit region. Select which item you want to draw from the drop-down menu at the top of the graph to draw that item. b) What is the...
The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for a monopolist. Suppose that this monopolist cannot price discriminate. Place the grey point (starymbol) on the graph to indicate the profit-maximizing price and quantity for this monopolist. If the monopolist is making a profitne the green rectangle (triungle symbols) to shade in the area representing its profit. On the other hand, if the monopolist is suffering a loss use the purple...
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...
V OIVERSITY 2. Consider the following graph (10 marks) ATC NER Q1 Q2 Q3 Q4 The graph above shows the demand curve (D), marginal cost curve (MC), average cost curve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? Answer: b) If this is a perfectly competitive market, what is the equilibrium quantity and price? Answer: c) What area represents the deadweight loss caused by the monopolist? Answer:
Refer to the graph below: Untitled.png a. What is the profit-maximizing quantity and what price will the monopolist charge? a. What is the total revenue at the profit-maximizing output level? b. What is the total cost at the profit-maximizing output level? c. What is the profit? d. What is the profit per unit (average profit) at the profit-maximizing output level? e. If this industry was organized as a perfectly competitive industry, what would be the profit- maximizing price and quantity?...
find where e point, the atc curve, and the profit square is
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Question 8 of 12 > 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...
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