Answer :
Due to increase in input production cost the price of inputs rise. As a result, for monopolist the production cost increase which increase the ATC (Average Total Cost). In the above picture's diagram the old ATC is ATC1 and new ATC is ATC2. Due to increase in cost the profit level decrease for monopolist. In above picture's diagram the old profit area and new profit area are shown.
Graphically show the effect on monopoly profit when the cost of production inputs rises. Make sure...
3. Graphically show the effect on monopoly profit when the cost of production inputs rises. Make sure to note both new and original profit
Graphically show the effect on short run profit for perfect competition when cost falls for an entire industry. Make sure to note how profit changes.
Instructions: When responding to the graphically illustrate portion of the question, make sure your axes and curves are properly labeled. When responding to the explain portion, use a flow chart or a narrative, not both. 1. Main: Using the AD-AS Framework, graphically illustrate and explain what happens to the equilibrium price level and equilibrium level of Real GDP in response to an increase in excess capital stock on hand and a reduction in the cost of oil. Follow up: Would...
Graph a Monopoly, make sure to include the Price, Quantity, Demand, MR, MC, ATC, and Profit Compare the price, quantity, and ATC of a monopoly with a perfectly competitive firm. Who is more efficient and why?
8. Show either graphically or through a mathematical argument the differ- ence in the effects from a profit tax verses a revenue tax on the amount of outputs/inputs the firm uses. 8. Show either graphically or through a mathematical argument the differ- ence in the effects from a profit tax verses a revenue tax on the amount of outputs/inputs the firm uses.
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 150 125-- 100 ATC MC-AVC 75 50 25 MR 0 20 4060 80 100 120 140 160 180 Quantity (units per month) PROFIT CALCULATIONS SETTINGS Reset $125.00 Market Price (Pmkt) Cost Structure LoeMarginal Revenue (MR) High Cost $50.00 Cost $95.00 Marginal Cost (MC) Quantity $7,500.00 $8,100.00 ($600.00) Revenue 120 40 Costs Quantity 60 Profit Instructions:...
Please make sure you label each part of the question, and please make sure to show ALL of your math work! Please make sure your handwriting is clear and easy to read. Thank you! 2. Suppose labor (L) and capital (K) are fixed proportion inputs, and that each unit of output must be produced with exactly 5 units of labor and 2 unit of capital. The price of a unit of labor is w, and the price of a unit...
When marginal cost of production rises above the average total cost of production, we know that: A. the firm has economies of scale B. average total cost is decreasing C. marginal cost is negative D. average total cost is increasing Average total cost curves are usually depicted as downward sloping at low levels of output because: A. Average fixed costs are declining B. Opportunity costs decline as output (Q) increases C. Average fixed...
Now that you've come up with a profit-maximization strategy, you want to make sure that you protect your monopoly for as long as possible. Your team provides you with some options to block competitors from entering the market. Rank them in terms of how effective they may be. Drag the options to a box labeled 'Most to Least Effective Options' in correct order and click Submit. Try to control vital inputs to the hydro-engine, such as the metals used to...
1. Recently the Federal Reserve began a plan to begin selling off bonds: Graphically show the effect on the value of money when the fed engages in this strategy. Be sure to note any inflation or deflation seen in the market in the appropriate location on the graph.