D)Refer to the graph above. If this monopolist were regulated by govemment agency and forced toset the socially optimal price, it would likely produceand charge the price ofA) O units of output; $2.40B) 300 units of output; $2.301400 units of output; $9.00D) 550 units of output; $2.20E) The socially optimal price, is socially optimal becauseA) Increases the monopolist profit.B) It minimizes ATc."C) It allows to eam a normal profit.D) It achieves allocative efficiency,F) The main problem with imposing the socially optimal price on monopoly is that socially optimalprice:a) May be so low that the regulated monopoly experiences economic loss.b) May be higher than the unregulated monopoly price.c) May cause the regulated monopoly to engage in price discrimination.d) May reduce the regulated monopoly output.G) Refer to the graph above and assume that the demand vertical intercept$16. If this single-pricemonopolist adopts first degree price discrimination, it should set price equal tounits and increase its profit towould sellA) $11.50; 1000; $3,000B) $9.00; 1400; $3,500B) $8.00; 1600; $6,400D) $11.50; 300; $700 QUESTION 3: Consider the demand and cost curves for a local utilities firm. All underlying workmust be shown.MC$11.50AC$9.00$8.00$5. 50MR300100014001600QuantityA) Refer to the graph above. If this monopolist were allowed to choose the profit-maximizing levelof output, it would produceand charge price ofA) 1000 units of output; $11.50B) 1400 units of output; $9.00C) 300 units of output; $11.50D) 1600 units of output; $8.00B) Refer to the graph above. At the profit maximizing output level, this monopolist would eam:A) Positive economic profit of $3,000. B) Zero economic profit (is breaking even).B) Negative economic profit of $6,000 D) Positive economic profit of $6,000C) Refer to the graph above. At the profit maximizing output level and price this monopolistwould reduce economic surplus and market efficiency by:A) $1,200B) $2,400C) $2,200D) $3,000

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

QUESTION 3: Consider the demand and cost curves for a local utilities fim. All underlying work must be shown. MC $11.50 AC $9.00 $8.00 $5.50 D. MR 300 1000 1400 1600 Quantity A) Refer to the graph above. If this monopolist were allowed to choose the profit-maximizing level of output, it would produce and charge price of A) 1000 units of output; $11.50 B) 1400 units of output; $9.00 C) 300 units of output; $11.50 D) 1600 units of output; $8.00 B) Refer to the graph above. At the profit maximizing output level, this monopolist would eam: A) Positive economic profit of $3,000. B) Zero economic profit (is breaking even). B) Negative economic profit of $6,000 D) Positive economic profit of $6,000 C) Refer to the graph above. At the profit maximizing output level and price this monopolist would reduce economic surplus and market efficiency by: A) $1,200 B) $2,400 C) $2,200 D) $3,000

QUESTION 3: Consider the demand and cost curves for a local utilities fim. All underlying work must be shown. MC $11.50 AC $9.00 $8.00 $5.50 D. MR 300 1000 1400 1600 Quantity A) Refer to the graph above. If this monopolist were allowed to choose the profit-maximizing level of output, it would produce and charge price of A) 1000 units of output; $11.50 B) 1400 units of output; $9.00 C) 300 units of output; $11.50 D) 1600 units of output; $8.00 B) Refer to the graph above. At the profit maximizing output level, this monopolist would eam: A) Positive economic profit of $3,000. B) Zero economic profit (is breaking even). B) Negative economic profit of $6,000 D) Positive economic profit of $6,000 C) Refer to the graph above. At the profit maximizing output level and price this monopolist would reduce economic surplus and market efficiency by: A) $1,200 B) $2,400 C) $2,200 D) $3,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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