Because a monopolist must lower its price to sell an additional unit of a good Question 12 options: a) marginal revenue is less than price b) marginal revenue is greater than price c) total revenue increases as price increases d) long term economic profits will be zero

Because a monopolist must lower its price to sell an additional unit of a good Question 12 options: a) marginal revenue is less than price b) marginal revenue is greater than price c) total revenue increases as price increases d) long term economic profits will be zero

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 19SQ

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Because a monopolist must lower its price to sell an additional unit of a good

Question 12 options:

a)	marginal revenue is less than price

b)	marginal revenue is greater than price

c)	total revenue increases as price increases

d)	long term economic profits will be zero

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A monopolist with total cost 500 - 100Q + 3Q2 and marginal cost MC = 6Q - 100 faces average revenue (demand) P = 2,000 - 2Q and hence marginal revenue MR = 2000 - 4Q. Calculate: (a) the quantity that the monopolist will sell (b) the price that the monopolist will charge (c) the competitive quantity (d) the competitive price (c) the deadweight loss from monopoly power
A monopolist sells 100 units at a price of $10 per unit. The average total cost per unit is $6 per unit. What is the monopolists profit? Question 8 options: a) $200 b) $300 c) $400 d) $500
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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?
Only answer BOLD and ITALIC part of the question. A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P2. - Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much.…
A monopolist with total cost 80 - 20Q + Q2 and marginal cost MC = 2Q - 20 faces average revenue (demand) P = 1000 - Q and hence marginal revenue MR = 1000 - 2Q. (a) Calculate the price that the monopolist will charge and the quantity of output. (b) Assume that the government sets a price ceiling at the competitive price. Calculate (i) the quantity supplied by the monopolist (ii) the monopolist's profit. (c) Calculate the deadweight loss from monopoly power in (a)
Question 2. A monopolist sells the same product at the same price into two different markets. The demand for the product in market #1 is denoted D₁ (p) = 30 - 2p where p is the unit price. The demand for the product in market #2 is given by D₂ (p) = 80 - 3p. (a) If the monopolist sets a price of $20 per unit, what is the total demand? (b) Explain why elasticity of total demand is not defined at a unit price of $15.
Which of the following is true for any monopolist ? (A) price equals marginal revenue (B) price is always greater than marginal revenue (C) price is always less than marginal revenue (D) price is always equals the average total cost (ATF)
In order for a monopolist to sell a quantity of 12 units, the price must be $6. Marginal revenue at this quantity will be: Group of answer choices > $6 and < $12 = $6 < $6 > $12