A monopolist will always suffer a loss if which of the following conditions is true? Question 2Answer a. MC > AVC b. Demand (Price) > ATC c. ATC > MC d. ATC > Demand (price)
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- a. At what output rate and price does the monopolist operate? b. In equilibrium, approximately what is the firm’s total cost and total revenue? c. What is the firm’s economic profit or loss in equilibrium?2. A monopolist faces demand p = 10 - Q and has costs TC = 10 + 2q. a. Provide expressions for marginal revenue and marginal cost. b. Maximize the firm's profit to determine the equilibrium price, quantity, and profit. c. The monopolist faces the prospect of entry by competitor with the same cost function. If the firm enters, they will compete by choosing quantities. Does the monopolist need to worry about this entry threat? Explain. d. The government is considering a subsidy of 4 for all firms in this industry. Should the monopolist support or oppose this policy? Explain.Answer the question by referring to the table below. The table shows the demand curve facing a monopolistwho produces at constant marginal cost of 6. In short-run equilibrium, the monopolist will produceQuantity Price10 1020 930 840 750 660 5a) 20 unitsb) 30 unitsc) 40 unitsd) 50 units
- Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity of a monopolist. ? PRICE (Dollars per hot dog) 5.0 6 4.0 3.0 2.5 2.0 1.5 1.0 0.5 0 0 50 100 Monopoly MR MC D 150 200 250 300 350 400 QUANTITY (Hot dogs) Competitive Monopoly Price Market Structure (Dollars) 450 500 Consider the welfare effects when the industry operates under a competitive market versus a monopoly. Monopoly Outcome On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight Loss Deadweight loss occurs when a monopoly controls a market because the resulting equilibrium is different from the competitive outcome, which is efficient. Quantity (Hot dogs) In the following table, enter the price and quantity that would arise in a competitive market; then enter the…MC ATC P2 P3 P4 MR Q, Q2 Quantity In the figure above, if the monopolist maximizes profit, how many units of output will be sold and at what price? Quantity = Q2, Price = P1 Quantity = Q1, Price = P3 Quantity = Q1, Price = P4 Quantity = Q2, Price = P2 Quantity = Q1, Price = P1 PricePrice a P5 P4 d P3 f AC P2 MC Q, Q2 Q4 Quantity/time MR Refer to the above figure. Suppose the government requires the natural monopolist to charge the efficient price. Then profits for the firm will be zero. losses equal to Q4 times distance f-g. profits equal to Q1 times distance a-b. losses equal to Q3 times distance d-e. P.
- The demand (downward sloping line) and marginal cost (upward sloping curve) of a monopolist are shown. Use the segment tool to add a marginal revenue curve to the graph. Then, use the point tool to indicate the monopolists profit maximizing price/quantity combination. Segment Point A Undo - Redo x Reset 10 10 quantity PriceIf variable costs decrease, what will a monopolist do? a raise prices and reduce output. b lower prices and expand output. c raise prices and expand output. d lower prices and reduce output.The Mamas and the Papas, a monopolist, faces a constant marginal cost of $3 of producing cashews. If it believes the elasticity of demand for cashews is -4, calculate the price it should charge for its product. Write answer explicitly
- Suppose that a profit-maximizing monopolist faces a demand curve of P = 240 – 4Q, a marginal revenue ofP=240 – 8Q, a marginal cost of 8Q, and an average total cost of 4Q. a. What quantity will the monopolist supply? b. What price will the monopolist charge? c. How much revenue will the monopolist make at the profit maximizing quantity? d. What is the monopolist's total cost at the profit maximizing quantity? e. How much profit will the monopolist make?I will rate and like, thank you! Easy economics question. Create graph that includes: Demand curve, marginal cost, and marginal revenue. Identify the profit-maximizing quantity and price for this monopolist. To do this you will need to determine marginal revenue at each level of output. Choose output that satisfies the monopolist’s profit maximizing condition of MR = MC. Does this firm earn a profit? How much profit if they do?The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below.The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. b. What are the values of the profit-maximizing output and price? Output: Price: $ c. What are the values of output, price and total revenue when the firm’s total revenue is maximized? Output: Price: $ Total revenue: $ Give me proper answer otherwise i give downvote Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
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