For a monopolist, why is marginal revenues less than price for every level of output except the first?
For a monopolist, why is marginal revenues less than price for every level of output except...
For a monopolist, why is marginal revenue less than price for every level of output except the first?
Explain why it is true that at every level of output except the first unit, a monopolist firms marginal revenue (MR) is below the selling price?
A certain monopolist has a positive marginal cost of production. Despite this fact, the monopolist decides to produce a quantity of output that maximizes total revenues. Assume that the marginal revenue curve for this monopolist always has a negative slope. Then the monopolist Group of answer choices is minimizing its profits. produces less output than it would if it maximized profits. produces the same output that it would if it maximized profits. produces an output where marginal revenue is strictly...
a. A monopolist finds that at its current level of output the marginal cost of production is $9, the average total cost is $9.95,the average variable cost is $9.75 and its marginal revenue is $9.45. What would you recommend that the monopolist do to increase profits? One word answer is not enough. Explain. b. A monopolist determines that at the current level of output the marginal revenue is $9.00 and its marginal cost is $10. What should the monopolist do to...
According to the characteristics of different markets, for a monopolist, marginal revenue is Group of answer choices constant up to the rate of output that maximizes total revenues. equal to price, just as it is for a perfectly competitive firm. the same as the demand curve. always less than price, after the first unit.
Question 15 For a perfectly competitive firm, price is less than marginal revenue at all output levels price exceeds marginal revenue at all output levels price is less than marginal revenue only at the profit-maximizing quantity price equals marginal revenue only at the profit-maximizing quantity price equals marginal revenue at all output levels
The profit maximisation condition for a monopolist is: a. pricemarginal costs b. price marginal revenues c. marginal revenues- average costs d. price average costs e. none of the above
A monopolist can produce any level of output at a constant marginal cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by q1 = 65 − p1,and the demand curve in the second market is given by q2 = 90 − 2p2. (a) If the monopolist can maintain the separation between the two markets, what level of output should be produced...
The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price Quantity Marginal Revenue (dollars) Demanded (dollars) $130 200 $110 120 300 90 110 400 70 100 500 SO 90 600 30 80 700 10 Marginal Cost Average Total Cost (dollars) dollars) $25 $139.00 32 103.30 40 87.50 50 8 0.00 62 77.00 77 7 7.00 What is the monopolist's profit at the profit maximizing level of output? $10,000 $50,000 $80,000 $0
2. A monopolist can produce any level of output at a constant marginal cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by qı = 65 – pı,and the demand curve in the second market is given by 92 = 90 – 2p2. (a) If the monopolist can maintain the separation between the two markets, what level of output should be...