Homework Answers
4) Since the marginal revenue
is more and marginal cost is less the monopolist should produce and
sell more and this is because producing and selling more can get to
decrease the marginal revenue and increase the marginal cost such
that they both are equal and profit is Maximised
Therefore (c) is the answer to the question
5) for monopolistic competition marginal revenue is equal to marginal cost at maximum profit in the short run therefore
(B) marginal cost is the answer to the question
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Figure 01. Cost and Demand for a Monopolistic Competitor Price $15.00 --- $10.00 --- — АС MC Imre 11 Demand curve...
2. (Figure: Costs and Demand for a Monopolistic Competitor) Price $15.00 --- --- $10.00 --- -...
2. (Figure: Costs and Demand for a Monopolistic Competitor) Price $15.00 --- --- $10.00 --- - AC --- -- I mre -- Demand curve facing each firm, de Quantity 32 4 250 a)- The profit-maximizing amount of output produced will be: b) - What price should the firm charge? c) - The total cost of producing the profit-maximizing output is: d) - The profits for the firm are:
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination...
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
Please Help Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic...
Please Help
Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
Exhibit 10.5 Exhibit 10.5 shows the demand, marginal revenue, and cost curves for a monopolistic competitor....
Exhibit 10.5
Exhibit 10.5 shows the demand, marginal revenue, and cost curves
for a monopolistic competitor. The monopolistic competitor's
profit-maximizing level of output is _____.
A) 137.5 units
B) 75 units
C) 125 units
D) 100 units
E) 150 units
Price 23 - ---- - - - - -- - 9 12 Quantin 15 MR Optimal output and price for the nondiscriminating monopolist in Exhibit 9-5 are 15 and $15 O 15 and $13 o 9 and $23 12 and...
Would the demand curve for a monopolistic competitor be more or less elastic than the demand...
Would the demand curve for a monopolistic competitor be more or less elastic than the demand curve for a monopolist? Justify your answer. What are the characteristics of a monopolistically competitive market? In what sense is there com- petition and in what sense is there monopoly in this type of market structure? What are three examples of monopolistically competitive markets? True, false or uncertain, and why? "Monopolistic competition is just another form of pure monopoly. True, false or uncertain, and...
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b....
1. A cartel is a group of firms that attempts to a. maximize joint revenue. b. increase competition. c. behave independently. d. maximize joint profit. 2. If a firm's product loses brand loyalty, then the demand curve will: a. Become less price elastic. b. Shift to the right. c. Become more price elastic. d. Shift to the left. 3. Assume a monopoly confronts the same costs and demand as a competitive industry. In this case, the monopolist produces: a. Less...
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure?...
QUESTION 1 Which of the following is not a characteristic of the monopolistic competition market structure? Many sellers, each small in size relative to the overall market. Few sellers. Differentiated product. Easy, low-cost entry and exit. QUESTION 2 Which of the following is the best example of a monopolistic competitor? Wheat farmers. Restaurants. Air Canada. General Motors. QUESTION 3 In the long run, both monopolistic competition and perfect competition result in: a wide variety of brand-name choices for consumers. an...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
A good example of a monopolistic competitive industry is
9 A good example of a monopolistic competitive industry is the public utility industry. diamond mining.the restaurant industry. the computer game industry. 10 A monopolistic competitor is like a monopolist in the short run in that when economic profits are equal to zero, price below marginal cost. equal to zero, price equals marginal cost. greater than zero, price exceeds marginal cost. greater than zero, changes in output are due to changes to plants by existing firms and there is n 11 Marginal cost pricing for an information product would...
2. (Figure: Costs and Demand for a Monopolistic Competitor) Price $15.00 --- --- $10.00 --- - AC --- -- I mre -- Demand curve facing each firm, de Quantity 32 4 250 a)- The profit-maximizing amount of output produced will be: b) - What price should the firm charge? c) - The total cost of producing the profit-maximizing output is: d) - The profits for the firm are:
36) When a monopolist sells the same product at different prices and the prices are not related to cost differences, we have B) price differentiation. D) monopoly pricing A) price discrimination C) marginal cost pricing. 37) 37) Monopolies misallocate resources because A) price does not equal marginal cost B) profits are usually positive. C) marginal cost does not equal average total cost. D) price does not equal average total cost. 38) 38) Which of the following assumptions is true about...
Please Help
Question 21 0.16 pts Examining the cost, revenue, and demand curves for a monopolistic competitor reveals that, at optimal output, the demand curve lies above the average total cost curve. Which of the following is true? O There is economic profit in the long run. Firms will enter the industry in the long run. O There is not enough information because demand is an imperfect benchmark for measuring profitability O There is an economic loss in the long...
1l. If a monopolistically competitive firm is incurring losses, then at the profit-max a price is above the average total cost curve. b. price is below the average total cost curve c. price is equal to marginal revenue. d. price is less than marginal revenue. e. average total cost equals marginal cost. Both competitive and monopolistically competitive firms a. can maximize profit by raising price. b. cannot control or set their own price c. can maximize profit by producing to...
Exhibit 10.5
Exhibit 10.5 shows the demand, marginal revenue, and cost curves
for a monopolistic competitor. The monopolistic competitor's
profit-maximizing level of output is _____.
A) 137.5 units
B) 75 units
C) 125 units
D) 100 units
E) 150 units
Price 23 - ---- - - - - -- - 9 12 Quantin 15 MR Optimal output and price for the nondiscriminating monopolist in Exhibit 9-5 are 15 and $15 O 15 and $13 o 9 and $23 12 and...
Would the demand curve for a monopolistic competitor be more or less elastic than the demand curve for a monopolist? Justify your answer. What are the characteristics of a monopolistically competitive market? In what sense is there com- petition and in what sense is there monopoly in this type of market structure? What are three examples of monopolistically competitive markets? True, false or uncertain, and why? "Monopolistic competition is just another form of pure monopoly. True, false or uncertain, and...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
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