Homework Answers
Answer : For monopolist the marginal revenue curve is half of demand curve. Because for monopolist
Demand = 2 * Marginal Revenue. For this reason for monopolist the marginal revenue curve lies below the demand curve.
But for perfectly competitive firm the demand curve is equal to the marginal revenue curve. For this reason for perfectly competitive firm the marginal revenue curve and demand curve are same.
It is never possible for monopolist that the marginal revenue curve is equal to the demand curve. Because for monopolist the demand curve is always double of the marginal revenue curve.
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USE YOUR OWN WORDS FOR YOUR RESPONSE: Explain why the marginal revenue curve for a monopolist lies below its demand cur...
Response Questions Part A To C A) USE YOUR OWN WORDS FOR YOUR RESPONSE: Explain how...
Response Questions Part A To C A) USE YOUR OWN WORDS FOR YOUR RESPONSE: Explain how economies of scale can be a barrier to entry. B) USE YOUR OWN WORDS FOR YOUR RESPONSE: How does the demand curve faced by a monopolist differ from the demand curve faced by a perfectly competitive firm? C) USE YOUR OWN WORDS FOR YOUR RESPONSE: Why is it impossible for a profit-maximizing monopolist to choose any price and any quantity it wishes?
As long as the demand curve lies above the marginal revenue curve for a monopolist, at...
As long as the demand curve lies above the marginal revenue
curve for a monopolist, at its profit-maximizing output level, it
will charge a price for its product that is
Question7 2 pts As long as the demand curve lies above the marginal revenue curve for a monopolist, at its profit-maximizing output level, it will charge a price for its product that is O above total cost. below marginal cost. O above marginal cost. O above average total cost.
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal...
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal revenue curve, the monopolist's demand curve_ MR. The perfectly competitive firm's demand its marginal revenue curve. - Flag Select one: O a. less than greater than, lies below, lies above b. cquals; is greater than; is; lies above O c.equals, is less than is; lies below o d greater than, equals; lies above is Previous page Next page MacBook Air o...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal c...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal cost of $5. Finally assume that the firm incurs no fixed costs A. Suppose the monopolist lowers the price from $90 to $89. Explain why the firm's marginal revenue is less than the price of the 11th unit sold, $89 (do not answer this question by providing a mathematical equation). B. At what price will the monopolist maximize its profit?...
USING YOUR OWN WORDS FOR YOUR RESPONSE: Why does the demand curve facing a monopolistically competitive...
USING YOUR OWN WORDS FOR YOUR RESPONSE: Why does the demand curve facing a monopolistically competitive firm slope downward in the long run, even after the entry of new firms?
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15. a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price. d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
1. Which of the following is true for a monopolist? a. Its marginal revenue curve is...
1. Which of the following is true for a monopolist? a. Its marginal revenue curve is equal to its demand curve. b. It faces many competitors. c. It faces a perfectly elastic demand curve. d. It must lower its price on all of its units in order to sell any additional units. 2. Which of the following is characteristic of a perfectly competitive market? a. Significant barriers to entry. b. Price below marginal revenue c. A large number of firms....
According to the characteristics of different markets, for a monopolist, marginal revenue is Group of answer...
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.
With the aid of a diagram explain how a monopolist determines how much output to produce...
With the aid of a diagram explain how a monopolist determines how much output to produce and what price to charge. (2) Briefly describe price discrimination of the first, second and third degrees. (3) Explain the difference between the demand curve facing a monopoly and the demand curve facing a perfectly competitive firm (4) Explain why under monopoly, price is greater than marginal revenue, while under perfect competition, price is equal to marginal revenue.
i) A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal...
i) A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal costs that increase with output. Show, on a single diagram, how its profit maximisation decision can be represented both in terms of a feasible set optimisation and its marginal revenue and marginal cost. Why is there a deadweight loss in this case? (5) ii) Now assume the firm is a typical firm in a perfectly competitive market. Show the firm's optimal choice alongside the...
Response Questions Part A To C A) USE YOUR OWN WORDS FOR YOUR RESPONSE: Explain how economies of scale can be a barrier to entry. B) USE YOUR OWN WORDS FOR YOUR RESPONSE: How does the demand curve faced by a monopolist differ from the demand curve faced by a perfectly competitive firm? C) USE YOUR OWN WORDS FOR YOUR RESPONSE: Why is it impossible for a profit-maximizing monopolist to choose any price and any quantity it wishes?
As long as the demand curve lies above the marginal revenue
curve for a monopolist, at its profit-maximizing output level, it
will charge a price for its product that is
Question7 2 pts As long as the demand curve lies above the marginal revenue curve for a monopolist, at its profit-maximizing output level, it will charge a price for its product that is O above total cost. below marginal cost. O above marginal cost. O above average total cost.
estion 9 yet wered its out of For the perfectly competitive firm,price MR; for the monopolistprice re _its marginal revenue curve, the monopolist's demand curve_ MR. The perfectly competitive firm's demand its marginal revenue curve. - Flag Select one: O a. less than greater than, lies below, lies above b. cquals; is greater than; is; lies above O c.equals, is less than is; lies below o d greater than, equals; lies above is Previous page Next page MacBook Air o...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal cost of $5. Finally assume that the firm incurs no fixed costs A. Suppose the monopolist lowers the price from $90 to $89. Explain why the firm's marginal revenue is less than the price of the 11th unit sold, $89 (do not answer this question by providing a mathematical equation). B. At what price will the monopolist maximize its profit?...
USING YOUR OWN WORDS FOR YOUR RESPONSE: Why does the demand curve facing a monopolistically competitive firm slope downward in the long run, even after the entry of new firms?
i) A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal costs that increase with output. Show, on a single diagram, how its profit maximisation decision can be represented both in terms of a feasible set optimisation and its marginal revenue and marginal cost. Why is there a deadweight loss in this case? (5) ii) Now assume the firm is a typical firm in a perfectly competitive market. Show the firm's optimal choice alongside the...
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