Homework Answers
57. As we know monopolist chooses that level of output where MR=MC. So, MR=MC at output level 3. Therefore, the right answer is A.
58. At an output level of 3, the price charged is $11 and ATC at that level of output is between $8 and $7. So, the profit per unit will be the difference between Price and ATC. Therefore, the right answer is $3 which is option B.
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Use the following to answer questions: 57 and 58 Figure 7.2 Price or Cost (per unit)...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
pleaser answer all four questions. thank you. 10 MC 8 Price and costs (dollars per unit)...
pleaser answer all four questions. thank you.
10 MC 8 Price and costs (dollars per unit) ATC 6 4 2. MR D 0 2 4 6 8 10 12 Quantity (units per year) The graph above describes a profit-maximizing monopolist. If the monopolist charges a price of $4, how many units will the monopolist sell? O4 O 6 o 8 Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next,...
Use the figure below to answer the following questions. Price and cost dollars per unit) 10...
Use the figure below to answer the following questions. Price and cost dollars per unit) 10 Quantity (units) Figure 12.4.1 3) Refer to Figure 12.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease. E) supply and market demand will decrease. 4) Refer to Figure 12.4.1 which shows the cost curves...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
5) Use the figure below to answer the following question. Price and cost (dollars per unit)...
5) Use the figure below to answer the following question. Price and cost (dollars per unit) MC 80 60 ATC 40 20 D MR 0 20 40 60 80 100 Quantity (units per week) Figure 2 a) Refer to Figure 2 If this firm is in monopolistic competition, what is its output? b) Refer to Figure 2 If this firm is in monopolistic competition, what is the price it will charge? c) Refer to Figure 2. In the short term,...
57. The following figure shows the market supply and demand of a good whose production entails...
57. The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit. Refer to the figure above. A total of ________ units of this good will be traded in this market, at the price of ________. a. 20; $2 b. 60; $8 c. 40; $4 d. 80; $6 58. The following figure shows the market supply and demand of a good whose production entails a $2 negative externality per unit....
3. (Figure 9.4) Which of the following statements is (are) TRUE? Price (S) 20 18 14...
3. (Figure 9.4) Which of the following statements is (are) TRUE? Price (S) 20 18 14 MC 10 MR 24 56 8 0 Quantity (160s) 3.54 I. If the firm is producing 5 units of output, it should expand output to increase profits because P II. At a price of $16, the firm's profits would rise if it raised its price III. The profit-maximizing quantity is 600 units. IV. The profit-maximizing price is $13. MC O II O I and...
Figure C Price, Revenue, Cost per Unit (dollars) AREMR FIGURES Quantity of utput per Day (thousands)...
Figure C Price, Revenue, Cost per Unit (dollars) AREMR FIGURES Quantity of utput per Day (thousands) In Figure C: 1. What is the profit-maximizing level of output for this firm? 2. What profit, or loss, is this company experiencing?
Price and cost per unit ATC AVC Demand Quantity The figure above represents a firm in...
Price and cost per unit ATC AVC Demand Quantity The figure above represents a firm in a monopolistic competition a. What is the firm's profit-maximizing or loss-minimizing output (0.5 point) b. What is the price they are going to charge at the output from part a) (0.5 point) c. What is the ATC they are subjected to at the output from part a) (0.5 point) d. Is this firm earning a loss or profit? What is it equal to You...
Use the figure below to answer the following question. Price (dollars per unit 100 80 60...
Use the figure below to answer the following question. Price (dollars per unit 100 80 60 40 20 MR 40 60 80 Quantity (units per week 20 Figure 13.2.1 15) Refer to Figure 13.2.1. This single-price monopoly producesunits per day and charges 15) a price of $ per unit A) 40: 50 B) 20: 75 C) zero; 0 D) 20; 20 E) 20: 50 16) To increase sales from 7 units to 8 units, a single-price monopolist must drop the...
Figure 12-4 Price and cost MC ATC AVC $40.50 36.00 30.00 22.00 20.00 -MR 130 180 240 Quantity Figure 12-4 shows the cost and demand curve for a profit-maximizing firm in a perfectly competitive market. 37) Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total variable cost? A) $7,200 B) $6,480 C) $5,400 D) $3,960 Figure 15-6 Revenue and cost per unit $30 ATC Demand...
pleaser answer all four questions. thank you.
10 MC 8 Price and costs (dollars per unit) ATC 6 4 2. MR D 0 2 4 6 8 10 12 Quantity (units per year) The graph above describes a profit-maximizing monopolist. If the monopolist charges a price of $4, how many units will the monopolist sell? O4 O 6 o 8 Assume a perfectly competitive industry making peanuts is in long-run equilibrium. The price per pound of peanuts is $2. Next,...
Use the figure below to answer the following questions. Price and cost dollars per unit) 10 Quantity (units) Figure 12.4.1 3) Refer to Figure 12.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease. E) supply and market demand will decrease. 4) Refer to Figure 12.4.1 which shows the cost curves...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
5) Use the figure below to answer the following question. Price and cost (dollars per unit) MC 80 60 ATC 40 20 D MR 0 20 40 60 80 100 Quantity (units per week) Figure 2 a) Refer to Figure 2 If this firm is in monopolistic competition, what is its output? b) Refer to Figure 2 If this firm is in monopolistic competition, what is the price it will charge? c) Refer to Figure 2. In the short term,...
3. (Figure 9.4) Which of the following statements is (are) TRUE? Price (S) 20 18 14 MC 10 MR 24 56 8 0 Quantity (160s) 3.54 I. If the firm is producing 5 units of output, it should expand output to increase profits because P II. At a price of $16, the firm's profits would rise if it raised its price III. The profit-maximizing quantity is 600 units. IV. The profit-maximizing price is $13. MC O II O I and...
Figure C Price, Revenue, Cost per Unit (dollars) AREMR FIGURES Quantity of utput per Day (thousands) In Figure C: 1. What is the profit-maximizing level of output for this firm? 2. What profit, or loss, is this company experiencing?
Price and cost per unit ATC AVC Demand Quantity The figure above represents a firm in a monopolistic competition a. What is the firm's profit-maximizing or loss-minimizing output (0.5 point) b. What is the price they are going to charge at the output from part a) (0.5 point) c. What is the ATC they are subjected to at the output from part a) (0.5 point) d. Is this firm earning a loss or profit? What is it equal to You...
Use the figure below to answer the following question. Price (dollars per unit 100 80 60 40 20 MR 40 60 80 Quantity (units per week 20 Figure 13.2.1 15) Refer to Figure 13.2.1. This single-price monopoly producesunits per day and charges 15) a price of $ per unit A) 40: 50 B) 20: 75 C) zero; 0 D) 20; 20 E) 20: 50 16) To increase sales from 7 units to 8 units, a single-price monopolist must drop the...
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