Compare consumer surplus when the market is perfectly competitive and when the market is a monopoly.
Compare consumer surplus when the market is perfectly competitive and when the market is a monopoly.
Is it possible for a monopoly to achieve the same economic surplus as perfectly competitive market structure? Explain
Is this correct :) Compare monopoly and perfectly competitive firm on the following points. Perfectly Competitive Firms Monopoly 8. Prof. Camara/Assignment/P-Micro/Winter_2020 Single Many Number of Sellers Yes, Comparatively Easy Yes, Difficult Free entry/exit Normal Zero Long-run economic profits Identical Differentiated The products the firms sell None, price taker Yes Firms has market power? Downward-sloping Horizontal Total Surplus is maximized? Zpro Low Barriers Deadweight-Loss positive or zero?
The graph shows the consumer surplus for a perfectly competitive industry. The industry is taken over by a monopoly. Draw the new consumer surplus. Label it CS1. Draw and label the consumer surplus that is transferred to the monopoly. Label it monopoly's gain. Price and cost MSC MR 14 12 16 20 24 Quantity
Suppose that a perfectly competitive industry becomes a monopoly. Describe the effects of this change on consumer surplus, producer surplus and price.
Suppose the firms in a perfectly competitive industry merge to form a monopoly. Which of the following would NOT occur? A. A fall in consumer surplus B. A rise in total consumer plus producer surplus C. A deadweight loss D. A rise in producer surplus
What is consumer surplus for MLS at the competitive equilibrium? What is economic profit for MLS at the competitive equilibrium? What is the price of a broadcast game when MLS is able to negotiate as a monopoly? What is consumer surplus for broadcasters when MLS is able to negotiate as a monopoly? What is producer surplus for MLS when MLS is able to negotiate as a monopoly? What is the economic profit for MLS when MLS is able to negotiate...
The perfectly competitive firm and market in the short run Consider a perfectly competitive market where demand is QD = 2,000 - 40P and quantity is measured in units while price is measured in dollars per unit. The long run supply is QS = 100P - 800. a) Find the equilibrium price and the equilibrium quantity. b) When the market is in equilibrium, what is the total expenditure in this market? c) When the market is in equilibrium, what is...
) Looking at differences between a single firm within a perfectly competitive market and a monopoly, which of the following is true? a) A single firm within a perfectly competitive market, sees the entire downward sloping demand curve of the perfectly competitive market. b) A single firm within the perfectly competitive market can set its price at any level and will not see a change in the demand. c) Because it is the only producer in the market, the monopoly...
39. A Monopoly differs from a Perfectly Competitive market in that: A) A Monopolist always earns a normal profit in the long run. B) A Monopoly market is easy to enter. C) No close substitutes exist for the Monopolist’s product. D) There is a lot of market power in a Perfectly Competitive market and none in a Monopoly market.
. In a single diagram illustrate and label consumer surplus, producer surplus, and social surplus for a perfectly competitive industry and a monopoly. What assumption is made to identify the supply curve for PC? What is the area of deadweight loss or monopoly inefficiency?