MC ATC AVC 5,000 MR 50 Number of gold hula hoops Figure 10.4 The Exclusive Gift Company has a monopoly over the sale of gold hula hoops. This company is currently selling 50 gold hula hoops at a price of $5,000. You are hired as an economic consultant to this company. You should advise this monopolist to: Hint: this is the same criteria as in perfect competition! O shut down in the shrot run and exit the industry in the long run O produce in the short run and expand capacity in the long run O produce in the short run, but exit the industry if conditions do not improve in the long run Dollars %24

MC ATC AVC 5,000 MR 50 Number of gold hula hoops Figure 10.4 The Exclusive Gift Company has a monopoly over the sale of gold hula hoops. This company is currently selling 50 gold hula hoops at a price of $5,000. You are hired as an economic consultant to this company. You should advise this monopolist to: Hint: this is the same criteria as in perfect competition! O shut down in the shrot run and exit the industry in the long run O produce in the short run and expand capacity in the long run O produce in the short run, but exit the industry if conditions do not improve in the long run Dollars %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The exclusive gift has a monoply over the sale of.... please solve

$4
MC
ATC
AVC
5,000
D.
50
MR
Number of gold hula hoops
Figure 10.4
The Exclusive Gift Company has a monopoly over the sale of gold hula hoops. This company is currently
selling 50 gold hula hoops at a price of $5,000. You are hired as an economic consultant to this company.
You should advise this monopolist to: Hint: this is the same criteria as in perfect competition!
O shut down in the shrot run and exit the industry in the long run
O produce in the short run and expand capacity in the long run
O produce in the short run, but exit the industry if conditions do not improve in the
long run

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