Question

ple Unanswered QUESTIONS. 1 POINT At 120 units of output, marginal revenue is $7, marginal cost is $7, and average cost is $6. If consumers demand 120 units of output when the price is $10, what is the expected profit? Provide your answer below: D FEEDBACK Content attribution QUESTION O.1 POINT The table below shows costs and revenues for a monopoly firm. What is this monopolist's profit-maximizing price? Quantity Price Marginal Revenue Marginal Cost Average Cost (P) (MR) (MC) (AC) 200 $125 $125 $25 $139 300 $1181 $104 $32 $103.30 400 $111 $90 $40 $87.50 500 $104 $76 $50 $80 600 $97 $62 $62 Provide your answer below: D FEEDBACK Content attribution QUESTION 9.1 POINT The demand curve of a monopolistically competitive firm is than that of a perfectly competitive firm. Select the correct answer below: O more elastic and flatter O less elastic and flatter o more elastic and steeper less elastic and steeper FEEDBACK Content attribution QUESTION 12 · 1 POINT In what way(s) does advertising allow a monopolistically competitive firm to raise its profits? There may be multiple correct answers. Select all that apply: o it allows it to raise its price by increasing customer loyalty O it allows it to lower costs of production it allows it to sell more by increasing demand for its product none of the above P FEEDBACK Content attribution QUESTION 13.1 POINT When oligopolistic firms form a cartel, Select the correct answer below: Othey act together as a monopoly Othey have a tacit (unspoken) agreement to not compete on price Othey meet to learn from one another Othey make a formal agreement to fix prices

Answer 1

Ans 5: Expected Profit = Total Revenue - Total Cost

= $10*120 - $6*120 (Total revenue = Price*Quantity, Total Cost = Average cost*Quantity)

= $1200 - $720

= $480

Ans 6:

Quantity	Price	Total Revenue	Average Cost	Total Cost	Total Profit (Total Revenue - Total Cost)
200	125	25000	139	27800	-2800
300	118	35400	103.3	30990	4410
400	111	44400	87.5	35000	9400
500	104	52000	80	40000	12000
600	97	58200	77	46200	12000

So, the expected profit = $12,000

Total Revenue = Price * Quantity

Total Cost = Average Cost * Quantity

Total Profit = Total Revenue - Total Cost

Ans 9: Less elastic and flatter. Whereas, the demand curve of perfectly competitive firm is perfectly elastic and horizontal in shape.

Ans 12: It allows it to sell more by increasing consumer demand. Through advertising, consumers get to know more about the product hence they purchases the product.

Ans 13: They act together as a monopoly.