Question 3a) Can a monopoly firm make losses? Explainb) In general, could it be optimal for a loss-making firm to continue to produce? Explainc) Could a loss-making firm continue to operate in the long run? Explaind) Why is the competitive firm considered more efficient than the monopoly firm?e) The inverse demand function of a firm is given as, P=surplus when P = 40.50-Q. Find the consumer2目

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Question 3 a) Can a monopoly firm make losses? Explain

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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1. A little town in the Midwest obtains all of its electricity from one company, Northstar Electric. Although the company is a natural monopoly, it is owned by the citizens of the town, all of whom split the profits equally at the end of each year. The CEO of the company claims that because all of the profits will be given back to the citizens, it makes economic sense to charge a monopoly price for electricity. True or False? Explain. Feel free to draw a graph to illustrate your answer.
Question 4
QUESTION 48 48. The Marginal Revenue curve facing a monopoly firm is O identical to its demand and average revenue curve. below its demand and average revenue curve. the same as it is for a perfectly competitive firm. perfectly elastic.
Compared to a competitive firm, a monopoly will ... (select all correct answers) A. produce an output where marginal revenue is lower than marginal cost B. charge a higher price □ C. produce greater quantities OD. be less efficient
Question 4: Show a Monopoly earning super normal profit and explain what are the loss to the society in terms of welfare loss (consumer and producer surplus) by comparing it with perfect competition?
The task to complete is to create a scenario in which a monopoly might form and analyze that monopoly situation. To do that, please complete the following: 1. Explain the barrier that you have that makes this company a monopoly (1 paragraph). (Tip: ead about the barriers that create a monopoly and use one of those that makes sense with your company).
A monopoly is considered a _____ and a competitive firm is considered a _________. a. price taker; price taker b. price maker; price maker c. price taker; price maker d. price maker; price taker
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QUESTION 8 Kim is a cook that makes really unique egg rolls and she is the only person selling these egg rolls. Assume Kim's demand is linear and that she profit maximises. Select the item from the list provided to make the following statements true: Kim's egg roll business operates in a monopoly because 1. is less than 2. profit 3. there are close substitutes 4. is greater than 5. there is only one seller 6. dead weight loss 7. is equal to 8. she is a price taker 9. there are many sellers Kim is profit maximising implying that she is producing at where her marginal revenue her marginal cost of production. ✓ If Kim were to produce where her marginal cost intersects the demand curve for her egg rolls, she would be maximising 10. revenue 11. consumer surplus 12, is exactly twice of
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