The image presents three graphs labeled (a), (b), and (c). Each graph depicts a situation in which a monopolist operates. The graphs include key economic curves such as Marginal Cost (MC), Average Total Cost (ATC), Demand (D), and Marginal Revenue (MR) plotted against Quantity (Q).**Graph (a):**- The MC curve intersects the ATC curve at its minimum point.- MC is upward sloping.- The demand curve (D) is downward sloping.- MR is downward sloping and lies below the demand curve.**Graph (b):**- Similar to graph (a), the MC curve intersects the ATC curve at its minimum point.- MC is upward sloping.- The demand curve (D) remains downward sloping.- MR is downward sloping and below the demand curve.**Graph (c):**- The MC curve intersects the ATC curve.- MC is upward sloping and crosses ATC at a higher level than in graphs (a) and (b).- The demand curve (D) is downward sloping.- MR is downward sloping, positioned below the demand curve.**Question:**The accompanying question asks which of the graphs accurately represents a monopolist in the long run.- a only- b only- a or b- c onlyEach graph is a typical representation of how a monopolist might set quantity and price based on their cost structures and the market demand. The task involves selecting the correct graph(s) that indicate a long-run equilibrium for a monopolist, typically one where the average total cost curve is tangent to the demand curve, allowing a monopolist to earn zero economic profit (normal profit).

In long run, a monopolist earns zero economic profit. It means price and ATC are equal in the long…

Answered: ATC $ MC MC ATC D MR MR Quantity (a)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Seema can sell 10 sweaters for $70 each, 20 sweaters for $60 each, 30 sweaters for $50 each, 40 sweaters for $40 each, and 50 sweaters for $30 each. Her marginal cost of production is constant at $30 for each additional unit (or sweater) produced. If she behaves like a monopolist, what is the number of sweaters she will sell? a. 20 b. 30 c. 40 d. 50
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Which of the following statements about monopolies are correct? There is more than one correct answer to this question. You must mark all of the correct answers to receive full credit for this question. OAt the profit maximizing output for a monopoly, P< MR. OMonopolies are always illegal in the U.S. O If a firm enjoys decreasing returns to scale, this may help it to become a monopoly. In a pure monopoly, the firm is the industry. O A patent can help a firm to become a monopoly.
O Macmillan Learning (Figure: Determining Monopolist Profit) Based on the graph, the profit-maximizing price is at point Price and Cost h Of. O g. d. C MR Output MC ATC
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?
None
1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.
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
a. what is the optimal quantity of goods for the firm to produce b. what is the optimal price for the quantity of goods for the firm to produce c. what is the total revenue for the firm d. what is the total cost for the firm e. what is profit/loss for the firm
Please no written by hand solutions 1. Assume the cost function for a monopolist is given by TC(q) = 30Q; the inverse demand function for the firms' output is p = 120 - Q, where Q is the total output. a. Find the profit-maximizing combination of price and quantity b. Estimate consumer surplus, producer surplus and the deadweight loss associated with this monopolist C. If this industry became perfectly competitive, explain and estimate the consumer surplus, producer surplus and deadweight loss of the industry d. Graph your answers for a, b, and c 2. Now assume that the monopolist above splits into two. Each of two firms has the cost function TC(q) = 30q. a. What are the firms' outputs in a Nash equilibrium of Cournot's model? b. Estimate the economic profits for each firm c. If firm 1 is the leader and firm 2 the follower, find the equilibrium outputs for the Stackelberg solution.
The graph below shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost: Price and cost (dollars) 100 80 60 AS 40 20 0 200 100 300 MR1 400 MR2 MC 500 Quantity How should the firm allocate sales between the two markets? 600 D₁ 700 MRT 800 900 D₂ 1000 Q

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ATC $ MC MC ATC D MR MR Quantity (a) Quantity (Б) ATC MC D MR Quantity (c) Which of the graphs above would reflect a Monopolist in the long run? a only