BUS Ch9 15. competition Vs. Monopoly Market Structure: Dead Weight Loss and the Misallocation of Resources. 48. If TC=1000 when Q=10, then if factors of production are doubled then TC = 2000 and Q=20. 47. Assume: a) Monopoly market structure. b) Firm's selection of "scale of plant results in "constant returns to scale" cost structure. c) This implies if you double inputs output doubles. d) Thus, double inputs doubles the cost of production. e) Thus, MC = AC. Q TC AC MC 10 1000 100 20 2000 100 100 40 4000 100 100 * YouTube 2:12/ 2:28 CC 67. In the video, when we assume constant returns to scale, the result is? Select one: O a. MC>AC O b. MC

BUS Ch9 15. competition Vs. Monopoly Market Structure: Dead Weight Loss and the Misallocation of Resources. 48. If TC=1000 when Q=10, then if factors of production are doubled then TC = 2000 and Q=20. 47. Assume: a) Monopoly market structure. b) Firm's selection of "scale of plant results in "constant returns to scale" cost structure. c) This implies if you double inputs output doubles. d) Thus, double inputs doubles the cost of production. e) Thus, MC = AC. Q TC AC MC 10 1000 100 20 2000 100 100 40 4000 100 100 * YouTube 2:12/ 2:28 CC 67. In the video, when we assume constant returns to scale, the result is? Select one: O a. MC>AC O b. MC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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d) If a price ceiling of $17.50 is imposed by the government on the monopolist, estimate (based on the graph) the quantity that the monopolist will produce. In this case, does the price ceiling in a monopoly improve economic efficiency or not? e) Supposed that instead of a regular monopoly, the graph above pertains to a natural monopoly, what change must be made to the graph to depict a natural monopoly?
Firm X is going to apply a 2nd degree price discrimination. They plan to charge P1 for the first units and P2 for the subsequent units. The inverse market demand curve is P=100 - 0.4q, and the total cost function is TC = 10q + 130. Answer the following questions: 4. the quantities (q1 & q2) the firm is going to sell after applying 2nd price discrimination are: O q1=300 and q2 =150 O q1=75 and q2 =150 O q1=150 and q2 =300 O qt=150 and q2 =75 5. the prices (P1 & P2) the firm is going to charge after applying 2nd price discrimination are: O P1=70 and P2=40 O P1=40 and P2=70 O P1=20 and P2=40 O P1=60 and P2=30
Sid is the CEO of a local power plant operating in monopoly market structure. Explain why the demand curve (P) here is larger than the MR, and why Sid won’t produce on the inelastic portion of demand curve. Draw a graph comparing Sid’s market structure with a market in perfect competition (on the same graph). Be sure to label the components of deadweight loss. On a separate graph, show the case where the monopoly is making a positive profit and label the profit area.
Suppose the market for asparagus has the following (inverse) market demand schedule: p=88-0.2Q The industry has the following cost structure: MC = ATC = $4 The Amalgamated Asparagus Company is looking to spend factor resources in socially-wasteful legal battles and advertising campaigns to maintain a full monopoly in this market. Answer the following. a. For its monopoly, Amalgamated Asparagus is willing to pay resources worth up to $14070 Suppose that competitive rent-seeking pressures cause Amalgamated Asparagus to pay its maximum willingness-to-pay for monopoly rights. b. Social cost of this monopoly = $ 4410 Hint: Your answer to (a) should be whole number. Think about why.
Due to , a natural monopoly's average cost is as its output rises. a Economies of scale; increasing b Economies of scale; decreasing c Diseconomies of scale; increasing d Diseconomies of scale; decreasing
COURSE: MICROECONOMICS - PERFECT COMPETITION AND MONOPOLY (RESUBMITION QUESTION) We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms.Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20) The demand in the market is: Q = 100 - 4pa) What is the individual supply of each firm?b) What is the supply of the whole industry?c) Obtain the market equilibriumIn the case where a new firm intended to enter a monopolist's market:(a) What kind of legitimate entry barriers can the firm face understanding the nature of the market it wishes to enter?b) What type of anticompetitive barriers could the firm already in the market present?
If a natural monopoly like SMUD, with declining long run ATC, was forced to break up into several small competitive firms, the Price charged by the competitive firms should decrease as the firms become more efficient. Total production for the industry should increase because of the efficiency generated by increased competition.
Help me answer these review questions. Fill in the Blanks For a monopoly, the firm’s demand curve is downward sloping, therefore to maximize its profit, the firm must produce where its marginal cost equals _____________. When marginal product is increasing, the total product is increasing at _______________. If the average product is greater than the marginal product the next average product will _____________.
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4. Maximize utility U = xy subject to 4x+3y=60, where x and y are the two consumption goods, 4 is the price of good x, 3 is the price of good y, and 60 is the budget. a) Set up the Lagrangian objective function. How much is the utility-maximizing consumption bundle? b) Show that the second-order condition/s is/are met (Use |Ħ₂ to identify whether it is a maximum or a minimum). c) What is the maximum utility?
a) True or False and Explain: A profit maximizing monopolist has no limit to how high they set the price. b) True of False and explain: When there are economies of scale in production it is possible for a competitive market to sustain the competitive equilibrium. c) When there are economies of scale in production, why is it beneficial to have only one producer?
1) With monopoly, we only specify long run cost functions because we are not as interested in the shut down decision and we don't have firm entry to compete away profit. Still, to make the math work, our monopolist cost functions often have fixed costs. Let's solve the following question: EagleSOFT has developed a computer program that will send UNT sports teams scores directly to purchaser's phones as text messages. Demand and total cost for the software company is described by the following equations: Demand: P = 70 -0.05Q, Cost: C = 4000 + - 10Q. a) What is the firm's level of output, the price they should charge, and their profit? b) What is the demand elasticity and Lerner index at the level of output?