Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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Question
I need answer quickly..
![Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are:
Sold per Day
0
100
200
300
400
500
600
700
greater than one.
Price per Meal
$3.50
$3.25
$3.00
$2.75
$2.50
$2.25
$2.00
$1.75
O one.
O infinite.
O less than one.
impossible to know with the available information.
OP3сеP₂.
●P4abP₂.
O OPofQo-
O OP4aQo-
O OP₂bQo-
Total
Fixed Cost
TABLE 10-2
Refer to Table 10-2, and suppose that the firm is a single-price monopolist. At the profit-maximizing level of output, the price elasticity of demand is
Dollars
Suppose a monopolist faces the demand curve and cost curves shown below.
P5
wo D
$150
$150
$150
$150
$150
$150
$150
$150
Po
Total
Variable Cost
0
$300
$500
$650
$750
$830
$905
$995
0
Total Revenue
0
$325
$600
Quantity
IMC
Qo Q₁Q₂Q3
MR
$825
$1000
$1125
$1200
$1225
ATC
Demand
9
Q5
FIGURE 10-4
Refer to Figure 10-4. If this single-price monopolist is producing at the profit-maximizing level of output, the total profit is represented by the area
At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that
O not enough information to determine the answer.
Othere are diseconomics of scale.
O there are economics of scale.
O there are neither economies of scale nor diseconomies of scale.
O there are either economies of scale or diseconomies of scale.
When average product is at a maximum,marginal product is equal to AP](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e31553f-e80f-4e05-bb48-e56accab1ad4%2F68a0d858-5a4e-4239-9d6a-3e859470c453%2F7shwast_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are:
Sold per Day
0
100
200
300
400
500
600
700
greater than one.
Price per Meal
$3.50
$3.25
$3.00
$2.75
$2.50
$2.25
$2.00
$1.75
O one.
O infinite.
O less than one.
impossible to know with the available information.
OP3сеP₂.
●P4abP₂.
O OPofQo-
O OP4aQo-
O OP₂bQo-
Total
Fixed Cost
TABLE 10-2
Refer to Table 10-2, and suppose that the firm is a single-price monopolist. At the profit-maximizing level of output, the price elasticity of demand is
Dollars
Suppose a monopolist faces the demand curve and cost curves shown below.
P5
wo D
$150
$150
$150
$150
$150
$150
$150
$150
Po
Total
Variable Cost
0
$300
$500
$650
$750
$830
$905
$995
0
Total Revenue
0
$325
$600
Quantity
IMC
Qo Q₁Q₂Q3
MR
$825
$1000
$1125
$1200
$1225
ATC
Demand
9
Q5
FIGURE 10-4
Refer to Figure 10-4. If this single-price monopolist is producing at the profit-maximizing level of output, the total profit is represented by the area
At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that
O not enough information to determine the answer.
Othere are diseconomics of scale.
O there are economics of scale.
O there are neither economies of scale nor diseconomies of scale.
O there are either economies of scale or diseconomies of scale.
When average product is at a maximum,marginal product is equal to AP
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