In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units permonth at a price of S38 per unit and lost S6/month as a result. If this scenario continued into thelong run, the firm (who's still a monopolist) should expect:Entry by new firms.Exit by existing firms.Neither entry nor exit.Unable to determine.А.В.С.D.Again, use the checklist to determine your answer.Entry ConditionsTrue/FalseExit ConditionsTrue/False1. Long Run Time-frame1. Long Run Time-frame|2. Positive Profit| 2. Negative Profit3. No Barriers to entry

The market structures are differentiated based on the number of firms in the market, the type of…

In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units per month at a price of S38 per unit and lost $6/month as a result. If this scenario continued into the long run, the firm (who's still a monopolist) should expect: A. Entry by new firms. Exit by existing firms. В. Neither entry nor exit. Unable to determine. D. Again, use the checklist to determine your answer. Entry Conditions True/False Exit Conditions True/False 1. Long Run Time-frame 1. Long Run Time-frame 2. Positive Profit 2. Negative Profit 3. No Barriers to entry

In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units per month at a price of S38 per unit and lost $6/month as a result. If this scenario continued into the long run, the firm (who's still a monopolist) should expect: A. Entry by new firms. Exit by existing firms. В. Neither entry nor exit. Unable to determine. D. Again, use the checklist to determine your answer. Entry Conditions True/False Exit Conditions True/False 1. Long Run Time-frame 1. Long Run Time-frame 2. Positive Profit 2. Negative Profit 3. No Barriers to entry

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

M8
Assume a monopolist with downward-sloping demand and marginal revenue (MR) curves. The monopolist operates with standard marginal cost (MC) and average total cost (ATC) curves. How does a monopolist determine the profit-maximizing output level and the corresponding profit-maximizing price? A. The output level occurs where MR-MC and price is determined from the demand curve at this output level OB. The output level occurs where Demand = MC and price is determined from the marginal revenue curve at this output level. OC. Both the output level and price are found where MR = MC. OD. Both the output level and price are found where Demand = MC.
The figure below represents the cost and demand curves for a natural monopoly that is regulated using a marginal cost pricing rule. Is this policy financially sustainable in the long run? Explain your answer.
Respond to the question with a concise and accurate answer, along with a clear explanation and step-by-step solution, or risk receiving a downvote.
Q: Does a monopolist firm always earn abnormal profit? Yes/No. Explainy your answer theoretically and graphically.
Q20 With regard to price discrimination, we can generally say that a monopolist practicing perfect price discrimination _____ a single-price monopolist in the same market. a. Produces the same output level and charges the same price as. b. Produces a lower level of output compared to. c. Generates more consumer surplus than. d. Generates a more efficient outcome for society as a whole compared to. e. Has the same effects on consumer welfare as.
Suppose a pure monopolist faces the following cost data, as shown by the table on the left, and the demand schedule, as shown on the right. a. Calculate the missing TR and MR amounts. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Answer is complete and correct. Production and Costs Demand Average Fixed Cost Average Variable |Average Total Total Marginal Quantity Demanded Total Marginal Revenue Price Product Cost Revenue Cost Cost $115 2$ 0.00 1 $60.00 $45.00 $105.00 $45 100 1 $ 100.00 2$ 100.00 2 30.00 42.50 72.50 40 83 2 $ 166.00 2$ 66.00 3 20.00 40.00 60.00 35 71 3 $ 213.00 $ 47.00 4 15.00 37.50 52.50 30 63 4 252.00 2$ 39.00 12.00 37.00 49.00 35 55 24 275.00 $ 23.00 6. 10.00 37.50 47.50 40 48 6. 2$ 288.00 $ 13.00 7 8.57 38.57 47.14 45 42 7 24 294.00 2$ 6.00 8. 7.50 40.63 48.13 55 37 8. 2$ 296.00 $ 2.00 9. 6.67 43.33 50.00 65 33 24 297.00 2$ 1.00 10 6.00 46.50…
Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs are $1.5 million. Its revenues are $1.2 million. Should the firm shut down in the short run? Should it leave the industry in the long run? a no; yes b no; no c yes; yes d yes; no
What is the answer and why?
Can I have the written solution? Thank you!
MONOPOLISTIC COMPETITION 1. Suppose that the cost of production is given by the following function: CT = 100 + Q2 and that the demand is given by P = 80 - Q. a. Determine the level of maximization.b. Determine the value of CT and ITc. Check that the IMg = CMg CT (Total cost) IMg (marginal income) CMg (marginal cost) Algebraically if the demand curve in the monopoly is a function of quantity, the demand curve is a straight line. P = a - bQWhere a is the ordinate to the origin, b the slope and Q the quantitySo if IT = P x QWe have that (a - bQ) Q = aQ - bQ2IT = aQ - bQ2And therefore the marginal income is the derivative of IT or what is equal to the variation of total income between the variation of the quantity.Therefore the IMg = derive the quantity in the function aQ - bQ2IMg = a - 2bQ Consider these functions when conducting monopoly exercises.
monopolist has demand and cost data given in the table below. The 'P' column gives the demand data -- what is the maximum amount the firm can charge to sell the associated quantity Q? The 'TC' column gives the total cost of producing that level of quantity Q. Q P TC 0 17 10 1 15 15 2 13 19 3 11 23 4 9 27 5 7 32 6 5 38 7 3 46 1. What is the marginal profit of the 1st unit? 2. How many units should this firm produce to maximize profit? No hand written solution and no image