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antity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 el $400

antity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 el $400

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a(n) producer surplus with a monopoly. a) lower b) higher c) unchanged Cao Rerer to your answer to Question Q11, Compared to pure competition, society faces a(n) total surplus with a monopoly. a) lower b) higher c) unchanged Q19 When a firm spends resources in an attempt to transfer income from consumers to themselves, we say that the firm exhibits: a) simultaneous consumption b) network effect c) X-inefficiency d) rent-seeking behavior Q20 X-inefficiency is more likely to occur within a monopoly rather than a purely competitive firm since: a) creative destruction would remove purely competitive firm if operating inefficiently b) monopolists have less access to technological advance c) highly productive managers prefer working in a competitive firm d) monopolists tend to have more secure supply chains Q21 Barriers to entry: a) usually result in pure competition b) can result from government regulation c) exist in economic theory but not in the real world d) are typically the result of wrongdoing on the part of a firm Q22 A price-discriminating monopolist will follow a system where: a) Buyers with inelastic demand are charged higher prices than buyers with elastic demand b) Buyers with inelastic demand are charged lower prices than buyers with elastic demand c) All buyers are charged the same price regardless of their elasticity of demand d) The price of the product is held the same even if the demand changes
Transcribed Image Text:a(n) producer surplus with a monopoly. a) lower b) higher c) unchanged Cao Rerer to your answer to Question Q11, Compared to pure competition, society faces a(n) total surplus with a monopoly. a) lower b) higher c) unchanged Q19 When a firm spends resources in an attempt to transfer income from consumers to themselves, we say that the firm exhibits: a) simultaneous consumption b) network effect c) X-inefficiency d) rent-seeking behavior Q20 X-inefficiency is more likely to occur within a monopoly rather than a purely competitive firm since: a) creative destruction would remove purely competitive firm if operating inefficiently b) monopolists have less access to technological advance c) highly productive managers prefer working in a competitive firm d) monopolists tend to have more secure supply chains Q21 Barriers to entry: a) usually result in pure competition b) can result from government regulation c) exist in economic theory but not in the real world d) are typically the result of wrongdoing on the part of a firm Q22 A price-discriminating monopolist will follow a system where: a) Buyers with inelastic demand are charged higher prices than buyers with elastic demand b) Buyers with inelastic demand are charged lower prices than buyers with elastic demand c) All buyers are charged the same price regardless of their elasticity of demand d) The price of the product is held the same even if the demand changes
*Use the graph below to answer Questions Q23 through Q26. Graph B S70 S65 MC $60 $55 $50 $45 ATO S40 $35 $30 S25 S20 $15 S10 S5 MR SO 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Output Quantity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 e) $400 Q26 What would happen in the long run? a) Monopolist would exit market b) Entrepreneurs would enter market c) Neither of the above. Q27 Suppose the government regulates the monopoly. What is the "socially optimal" price? Hint: Slide 22 a) $40 b) $33 c) $30 d) $25
Transcribed Image Text:*Use the graph below to answer Questions Q23 through Q26. Graph B S70 S65 MC $60 $55 $50 $45 ATO S40 $35 $30 S25 S20 $15 S10 S5 MR SO 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 Output Quantity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 e) $400 Q26 What would happen in the long run? a) Monopolist would exit market b) Entrepreneurs would enter market c) Neither of the above. Q27 Suppose the government regulates the monopoly. What is the "socially optimal" price? Hint: Slide 22 a) $40 b) $33 c) $30 d) $25
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