In the Cournot model the final level of output is the output that would be produced if the industry was a monopoly, and is the output that would be produced if the industry was perfectly competitive. O a. greater than; less than b. greater than; equal to O c. equal to; less than O d. less than; greater than In the Cournot model, when a new firm begins production it assumes its demand curve is Oa. the market demand less the amount the other firm is selling. O b. the market demand plus the amount the other firm is selling. c. the same as the competing firm's demand curve. d. one-half of the competing firm's demand curve.

In the Cournot model the final level of output is the output that would be produced if the industry was a monopoly, and is the output that would be produced if the industry was perfectly competitive. O a. greater than; less than b. greater than; equal to O c. equal to; less than O d. less than; greater than In the Cournot model, when a new firm begins production it assumes its demand curve is Oa. the market demand less the amount the other firm is selling. O b. the market demand plus the amount the other firm is selling. c. the same as the competing firm's demand curve. d. one-half of the competing firm's demand curve.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.3P

See similar textbooks

Similar questions

ystem (Academic) Mes of Microeconomics || Fall20 Suppose a monopolist's costs and revenues are as follows. ATC = S50, MC = $35; MR = $40; P $55. The firm should of Select one: O a. decrease output and increase price. tion O b. increase output and decrease price. O c not change output or price. O d. shut down. Next page s page 00 HUAWEI Nova 3 Al CAMERA
QUESTION 5 Which of the following is true for monopoly and perfect competition? CA The demand for the individual firm's product is perfectly elastic. O B.Economic profits can OC.Marginal revenue is be sustained O D. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost horizontal at the indefinitely over time. industry equilibrium price.
1.Explain under each of the situation, a firm working under a perfectly competitive market would keep on producing or shut down. Show using diagram and also explain the condition thoroughly. a. P=14: AC=16: AVC=10 and O=40 b. P=10; AC=10; AVC=8 and Q=20 2.Show using the same dagram for both monopoly and porfect competition make sructure the consumer surplus of each market and how tlirisuhia secking lbe incrme is destributed and the 10 marks deadweight loss expetienced. Explaineyour Owa words.
Over a recent family dinner, your Aunt Trudy expresses her disdain for price discriminating monopoly businesses, to which you, having taken some economics reply, "A perfect price discriminating monopoly may convert all of the consumer surplus to monopoly profit, but at least it produces O A. more output than a competitive industry would produce. OB. the same output that a competitive industry would produce. C. at the minimum of its average total cost (ATC) curve. D. where its marginal cost (MC) curve is still declining.
Why does a monopoly arise? O because of diseconomies of scale because entry to an industry is blocked because of elastic demand because firms want to maximize profits
The figure to the right shows the average cost of production (AC) for a cable company that is a monopoly as well as the corresponding demand (D) for cable subscriptions in the city to which the company provides service. Is this company a natural monopoly? This firm O A. is a natural monopoly because average cost is decreasing when it crosses demand. B. is not a natural monopoly because its demand is downward sloping. C. is a natural monopoly because total cost does not always increase with output. O D. is a natural monopoly because it has excess capacity. O E. is not a natural monopoly because it must advertise. Price (dollars per subscription) 80- 76- 72- 68- 64- 60- 56- 52- 48- 44- 40- 36- 32- 28- 24- 20- 16- 12- 8- 4- 0- D AC 5 6 8 9 Quantity (cable subscriptions in 1000s) Ⓡ 10
Suppose a perfectly competitive industry can produce a product with total cost TC = 30 and the market demand for the product is given by Q = 120- Suppose that the same market can be served by a monopolist operates with the same cost and demand functions. How does the consumer surplus change due to monopoly relative to perfect competition? O It falls by 3600 It does not change OIt falls by 6000 It falls by 4800
An economist was trying to understand the relation between price, Marginal Revenueand Marginal cost in Monopoly and Perfect Competition. Determine equilibrium priceand output in the long run under Monopoly and Perfect Competition if the marketdemand curve is given as QD=500-2P and Marginal cost is Rs 50. Also comment onthe values obtained in the case of Monopoly and Perfect Competition
Assume a monopoly firm has a downward sloping linear demand curve and cannot price discriminate. What happens to the firm's marginal revenue as it sells additional units? Select one: O a. Marginal revenue increases. O b. Marginal revenue is constant. O c. Marginal revenue increases then decreases. d. Marginal revenue decreases then increases. e. Marginal revenue decreases.
A multiproduct monopoly firm sets when the products are the products. O O O lower; complements; scale lower; substitutes; scope lower; substitutes; scale lower; complements; scope higher; complements; scope ____prices than separate monopoly firms or when there are economies of among
These are statements comparing monopoly with perfect competition. Which of the following statements is/are false? Select all that apply. A. A a perfectly competitive industry faces a horizontal straight line demand curve whereas a monopoly faces a downward sloping demand curve. B. A perfectly competitive firm faces a small fraction of the industry demand curve whereas a monopoly faces the entire market demand curve. C. A perfectly competitive firm can only set quantities; a monopoly can set both price and quantity, although once it chooses a price (quantity), the other variable, quantity (price), is determined by the demand curve it faces. D. A perfectly competitive equilibrium is efficient; a monopoly equilibrium is inefficient. E. A perfectly competitive firm necessarily earns zero economic profit in a long run equilibrium; a monopoly typically earns a super-normal profit in a long run equilibrium.
For a single-price monopoly, marginal revenue is when demand is elastic and is when demand is inelastic. Select one: O a. positive; negative O b. negative; positive O c. negative; negative O d. positive; positive