Deadweight loss occurs in the Monopoly market because- [More than 1 correct option] a. Price charged by a monopolist is higher than perfectly competitive market b. A monopoly market restricts output below the level in perfect competition. c. A monopolist makes greater profit by producing at the minimum possible long-run average cost. d. For a monopoly market marginal benefit equals marginal cost. **NOTE** PLEASE REMEMBER THAT THERE IS MORE THAN 1 CORRECT OPTION. SO PLEASE DON'T JUST GIVE ONE ANSWER.

Deadweight loss occurs in the Monopoly market because- [More than 1 correct option] a. Price charged by a monopolist is higher than perfectly competitive market b. A monopoly market restricts output below the level in perfect competition. c. A monopolist makes greater profit by producing at the minimum possible long-run average cost. d. For a monopoly market marginal benefit equals marginal cost. NOTE PLEASE REMEMBER THAT THERE IS MORE THAN 1 CORRECT OPTION. SO PLEASE DON'T JUST GIVE ONE ANSWER.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. You run a monopoly firm that serves two types of consumer. Individual type-A consumers have a value of 8 for their first unit of your product, a value of 4 for their second unit, and a value of zero for all additional units. Individual type-B consumers have a value of 5 for a single unit of the product and zero for any additional units. There are 3 type-A consumers and 5 type-B consumers. Your marginal cost is zero. a) If your firm can set only a single per-unit price for any units sold, what price should you choose? What is your total profit? b) If your firm can practice first-degree price discrimination, how many units are sold to each consumer and how much does each consumer pay? What is your total profit?
9. Draw a linear demand curve, linear MC and MR for a monopolist. (a) Show graphically the optimal price and quantity produced. (b) How will your answer in (a) change if the demand becomes more inelastic? Will the gap between MC and p increase or decrease? (c) Show the CS, PS, and, DW L.
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2. The demand curve facing a monopolist is ________. Select one: a. downward-sloping b. upward-sloping c. horizontal d. vertical
5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms can competitive firms, but not monopolists earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium takes the same amount of time for monopolies and competitive industries. True O False
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True false or uncertain. Explain why 1. A monopolist with no costs maximizes marginal revenue 2. The government can eliminate deadweight loss by regulating a natural monopoly so that price equals marginal cost. 3. Airlines that offer leisure and business airfares are practicing perfect price discrimination. 4. A monopolist facing perfectly elastic demand receives no producer surplus
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