Based on the graph below, how does the monopolist's profit-maximizing price and output compare to the efficient price and output?
A) The monopolist charges less and produces less
B) The monopolists charges more and produces more
C)The monopolists charges more and produces less
D) The monopolists charges less and produces more
Homework Answers
The answer is Option C
The monopolists charges more and produces less
The profit maximizing level of output for a monopoly is where marginal revenue is equal to marginal cost.The monopolist is likely to produce less and charge more in order to maximize profits as compared to efficient price and output.
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Based on the graph below, how does the monopolist's profit-maximizing price and output compare to the...
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?...
a) How does a firm operating under monopoly market structure determine profit maximizing output and price?...
a) How does a firm operating under monopoly market structure determine profit maximizing output and price? b) Explain why an increase in price above the profit maximising price implies that a reduction in profits for the monopolist.
a) How does a firm operating under monopoly market structure determine profit maximizing output and price?  
a) How does a firm operating under monopoly market structure determine profit maximizing output and price? (5 marks)b) Explain why an increase in price above the profit maximising price implies that a reduction in profits for the monopolist.
(Table: Monopolist) Refer to the table. What is the monopolist's profit-maximizing level of output? Output Total...
(Table: Monopolist) Refer to the table. What is the monopolist's profit-maximizing level of output? Output Total Revenue Marginal Cost 1 $20 $10 2 10 3 70 10 4 80 10 5 85 10 6 88 10 7 90 10 50
(Figure: The Profit-Maximizing Output and Price) Use Figure: TheProfit-Maximizing Output and Price. Assume that there...
(Figure: The Profit-Maximizing Output and Price) Use Figure: The
Profit-Maximizing Output and Price. Assume that there are no fixed
costs and AC = MC = $200. The profit-maximizing
output for a monopolist is:0.20.16.8.
10) In the above figure, what is the profit-maximizing output and price?
10) In the above figure, what is the profit-maximizing output and price? A) 8, $7 B) 10, $8 C) 12, $10 D) 10, $10 11) In the above figure, what is the price the firm receives if the output is 8? A) $10 B) $2 C) $7 D) $8 12) The short-run break-even price A) Is the price at which the firm's current liabilities are paid off? B) Is the price at which a firm's total revenues equal total costs? C) Occurs at the output at which the firm yields a below normal...
b) How much output should the monopolist produce in order to maximize profit? c) How much...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
1s) The taker who tries to find the profit-maximizing rate of output. A) Price taker who...
1s) The taker who tries to find the profit-maximizing rate of output. A) Price taker who tries to find the profit-maximizing price. monopolist is a rice ice searcher who tries to find the rate of output that maximizes price. B) price searcher who tries to find the profit-maximizing price-output combination $13 $12 $11 $10 $9 $8 14 19 25 30 35 $15 $25 $45 $75 $115 $165 19) Refer to the above table. Given the demand and cost schedules, what...
1.) The profit-maximizing output level for a monopolist is where the: A. price is maximized. B....
1.) The profit-maximizing output level for a monopolist is where the: A. price is maximized. B. output sold is maximized. C. ATC curve is minimized. D. maximum efficiency is achieved. E. MR = MC. 2.) An example of price discrimination is the price charged for: A. troll dolls. B. part tickts. C. clothes. D. diamonds.
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...
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?...
(Table: Monopolist) Refer to the table. What is the monopolist's profit-maximizing level of output? Output Total Revenue Marginal Cost 1 $20 $10 2 10 3 70 10 4 80 10 5 85 10 6 88 10 7 90 10 50
(Figure: The Profit-Maximizing Output and Price) Use Figure: The
Profit-Maximizing Output and Price. Assume that there are no fixed
costs and AC = MC = $200. The profit-maximizing
output for a monopolist is:0.20.16.8.
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
1s) The taker who tries to find the profit-maximizing rate of output. A) Price taker who tries to find the profit-maximizing price. monopolist is a rice ice searcher who tries to find the rate of output that maximizes price. B) price searcher who tries to find the profit-maximizing price-output combination $13 $12 $11 $10 $9 $8 14 19 25 30 35 $15 $25 $45 $75 $115 $165 19) Refer to the above table. Given the demand and cost schedules, what...
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