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. OB. Economic profits can OC.Marginal revenue is be sustained OD. 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.

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. OB. Economic profits can OC.Marginal revenue is be sustained OD. 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.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 6P

See similar textbooks

Similar questions

Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as the incumbent tries to bleak into the market by selling 4,000 units of output. Estimate from the graph what the new firms average cost of producing output would be. If the incumbent continues. to produce 6,000 units, how much output would the two films supply to the market? Estimate what would happen to the market price as a result of the supply of both the incumbent firm and the new entrant. Approximately how much profit would each firm earn? Figure 9.2 Economics of Scale and Natural Monoploy
A market in perfect competition is in long-run equilibrium. What happens to the market if labor unions are able to increase wages for workers?
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
The following table provides information about long-run average cost curve of a firm: Quantity LRAC 100 50 200 43 300 39 400 39 500 44 600 52 O a. This cost structure is an example of natural monopoly. O b. For the first 300 units of output, this firm has diseconomies of scale. O c. For output levels greater than 400, the firm has economies of scale. O d. For output levels between 300 and 400, the firm has constant returns to scale.
Henry Potter owns the only wcU in town that pro-ducesclean drinking water. He faces the follO\\•ingdemand, marginal revenue, and marginal cost curves:Demand: P • 70 - QMarginal Revenue: MR • 70 - 2Q~arginal Cost: MC • lO + Qa. Graph these three curves. Assuming thatMr. Potter maximizes profit, what quantity docshe produce? What prioc does he charge? Showthese rcsuiiS on your graph.b. Mayor George Bailey, concerned about water con~sumcrs_. is considering a price ceiling that is10 percent below the monopoly price derived inpart (a). What quantity would be demanded atthis new price? Would the profit-maximizingMr. Potter produce that amount? Explain. (Hi11t:1hink about marginal cost.)c. George's Uncle Billy says that a price ceiling is abad idea because price ceilings cause shortages.Is he right in this case? What size shortage wouldthe prioc ociling create? Explain.d. George's friend Clarence, who is even more con~cerncd about consumers, suggests a price ceiling50 percent below the…
A Monopoly: Select one: O a. faces a downward sloping demand curve O b. None of the provided answers is correct O c. is a price taker O d. maximizes profit by setting Price equal to marginal cost
.
Urgently need
What is the difforence between acounting proft and economic prof? OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts. OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit coste OG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costs OD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.
Solve Economic question. But not the copy paste.
1
Please answer correct explain Don't answer by pen pepar