Monopolies supply a level of output where their marginal cost equals their marginal revenue. If a...
Monopolies supply a level of output where their marginal cost equals their marginal revenue. If a pandemic somehow increases their cost of production (including marginal costs), what will happen to their level of output, profit level, and deadweight loss to society?
Word limit is 50-150 words.
Homework Answers
When the cost of production rises , marginal cost rises , which means additional unit produced requires more cost . So the monopoly firm will raise price futher . Since the firm has market power and is the only supplier , so it can charge any price . So price charged rises further , output falls . Profit level either falls or remains unaltered due to rise in price . Deadweight loss to society rises since the price charged is further away from competitive price .
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Monopolies supply a level of output where their marginal cost
equals their marginal revenue. If a...
H) Why is the level of output where marginal revenue equals marginal cost called as the...
H) Why is the level of output where marginal revenue equals marginal cost called as the profit-maximizing output? prove it in a logical way would be greatly appreciated if it is answered in 5sentences by your own
19. A monopolist maximizes profit A] where marginal revenue equals marginal cost B] where average revenue...
19. A monopolist maximizes profit A] where marginal revenue equals marginal cost B] where average revenue equals average cost [C] where price equals marginal cost [D] by charging the highest possible price on the demand curve.
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of...
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of the minimum point on the average variable cost curve is that: it is the point of indifference between producing at a loss and shutting down. it shows the amount of total cost incurred by a firm in the production process.! if the firm produces one more unit, its average variable cost will be less than its marginal cost. it is the profit-maximizing level of...
19. Assume that marginal revenue equals rising marginal cost at 100 units of output. At this...
19. Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, the firm's average fixed cost is $6 and its average total cost is $10. The price of the product is $8. In order to maximize profit, the competitive firm should: a. shut down b. produce 100 units c. produce more than 100 units d. produce less than 100 units e. indeterminate 20. If the entry of new firms into a perfectly competitive...
Suppose your farm produces grain in a perfectly competitive industry. Currently, you can sell a bushel of grain at $15 per unit. You are producing where marginal revenue equals marginal cost, yieldin...
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A.Draw a graph showing the demand, marginal revenue, and marginal cost curves for a typical monopolist,...
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QUESTION 4 When production is 2000, marginal revenue is $20 per unit and marginal cost is...
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Profits will always be maximized when total revenue equals total cost =T or F If marginal...
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Question Completion Status: QUESTION 38 Marginal cost equals total cost divided by the quantity of output produced...
Question Completion Status: QUESTION 38 Marginal cost equals total cost divided by the quantity of output produced total output divided by the change in total cost the slope of the total cost curve the slope of the line drawn from the origin to the total cost curve QUESTION 39 wa firm produces nothing which of the following costs will be zero? - total cost faxed cost opportunity cost variable cost QUESTION 40 A production function is a relationship between Inputs...
A firm sets its output where O marginal revenue minus marginal cost is greater than zero....
A firm sets its output where O marginal revenue minus marginal cost is greater than zero. O marginal revenue minus marginal cost is less than zero. O marginal revenue minus marginal cost equals zero. O marginal revenue plus marginal cost equals zero.
19. A monopolist maximizes profit A] where marginal revenue equals marginal cost B] where average revenue equals average cost [C] where price equals marginal cost [D] by charging the highest possible price on the demand curve.
1 price equals marginal revenue at all output levels Question 16 4 pt The significance of the minimum point on the average variable cost curve is that: it is the point of indifference between producing at a loss and shutting down. it shows the amount of total cost incurred by a firm in the production process.! if the firm produces one more unit, its average variable cost will be less than its marginal cost. it is the profit-maximizing level of...
19. Assume that marginal revenue equals rising marginal cost at 100 units of output. At this output level, the firm's average fixed cost is $6 and its average total cost is $10. The price of the product is $8. In order to maximize profit, the competitive firm should: a. shut down b. produce 100 units c. produce more than 100 units d. produce less than 100 units e. indeterminate 20. If the entry of new firms into a perfectly competitive...
Suppose your farm produces grain in a perfectly competitive industry. Currently, you can sell a bushel of grain at $15 per unit. You are producing where marginal revenue equals marginal cost, yielding an output level of 200,000 bushels. At your current level of output, variable costs are $3,340,000 and fixed costs are $150,000. a) What is your current economic profit in the short-run from production? b) Given the correct answer to part a), should you continue producing this output level...
QUESTION 4 When production is 2000, marginal revenue is $20 per unit and marginal cost is $22.25 per unit. Do you expect maximum profit to occur at a production level above or below 2000? Since marginal revenue is less than marginal cost around q = 2000, as you produce more of the product your revenue increases slower than your costs, so profit decreases, and maximal profit will occur at a production level below 2000. The profit function is not given,...
Question Completion Status: QUESTION 38 Marginal cost equals total cost divided by the quantity of output produced total output divided by the change in total cost the slope of the total cost curve the slope of the line drawn from the origin to the total cost curve QUESTION 39 wa firm produces nothing which of the following costs will be zero? - total cost faxed cost opportunity cost variable cost QUESTION 40 A production function is a relationship between Inputs...
A firm sets its output where O marginal revenue minus marginal cost is greater than zero. O marginal revenue minus marginal cost is less than zero. O marginal revenue minus marginal cost equals zero. O marginal revenue plus marginal cost equals zero.
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