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 ✓ 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 8. she is a price taker 9. there are many sellers 10. revenue 11. consumer surplus 12. is exactly twice of

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 ✓ 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 8. she is a price taker 9. there are many sellers 10. revenue 11. consumer surplus 12. is exactly twice of

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price (dollars per movie) Quantity demanded, weekend (movies per week) Quantity demanded, weekday (movies per week 18 0 0 15 100 0 12 200 0 9 300 100 6 400 200 3 500 300 22) Roxie's Movie Theatre has a monopoly and discovers that at $12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey. Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is $6. Roxie's charges ________ on weekdays and ________ on weekends. A) $9; $12 B) $6; $15 C) $6; $18 D) $3; $12 23) If a monopolist can perfectly price discriminate, it will A) charge the same price for each unit sold. B) produce until price elasticity of demand equals one. C) not be concerned with the market demand. D) charge a different…
2. The manager of a local monopoly estimates that the elasticity of demand for its product is equal to -4. The firm's marginal cost is 25. Express the firm's marginal revenue as a function of its price then determine the profit-maximizing price.
What is the dead weight loss? a.The loss in welfare due to the monopoly producing a LARGER amount than a competitive market would b. None of the other answers is correct c.A new weight loss system d.The loss in welfare due to the monopoly producing a SMALLER amount than a competitive market would
Question 6 Which of the following statements is incorrect in comparing regular monopoly with perfect price discrimination? Perfect price discrimination increases deadweight loss. Perfect price discrimination achieves efficient output. Perfect price discrimination increases producer surplus. Perfect price discrimination decreases consumer surplus. A Moving to another question will save this response.
Please help me find the true statements, I originally choose 1,5,8, 9, 11, and 12 but I got an incorrect. Thank you. 1. This firm is a monopoly 2. This firm is competing in a perfectly competitive market 3.The firm will choose to produce quantity Q1 4.The firm will choose to produce quantity Q3 5.The firm will choose to produce quantity Q4 6.The area circumscribed by the points (Q0,Q1,B,P1) is equal to total revenue 7.The area circumscribed by the points (Q0,Q1,B,P1) is equal to total cost 8.The area circumscribed by the points (Q0,Q3,D,P3) is equal to total revenue 9.The area circumscribed by the points (Q0,Q3,D,P3) is equal to total cost 10.If the firm is producing Q1, it will make a profit 11. If the firm is producing Q3, it will make a profit 12. If the firm is producing Q1, it will not make a profit 13. If the firm is producing Q3, it will not make a profit 14. If the firm is producing Q4, it will make a profit 15. If the firm is producing Q4, it…
The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that supplies Hi-tech components. Use the graph to answer the questions that follow. "image" i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the longrun? Explain your answer. Assume all factors constant. iv. Examine the effects of ABC Inc. Ltd on consumers.
Raphael’s hair salon is a monopoly in a small town and is currently earning an economic profit. Draw a correctly labeled graph for Raphael and include the curves that are necessary to identify the following. The profit-maximizing price and quantity of haircuts, labeled Pm and Qm The area representing economic profits, shaded completely Does Raphael’s hair salon produce the allocatively efficient quantity? Explain. Assume that Raphael signs a new lease with an increase in rent, a fixed cost. Will the price of haircuts provided by Raphael increase, decrease, or stay the same in the short run? Explain. Assume that new hair salons enter the market and that the market becomes monopolistically competitive. Answer each of the following. The entry of new hair salons creates close substitutes for each individual salon’s services. As a result, will the demand for Raphael’s hair salon become more elastic or become less elastic, or will there be no change in the elasticity? Will…
Question 4 The diagram below illustrates a monopoly firm: (a) Label the curves Curve I, Curve II, Curve III, Curve IV. (b) Graphically identify profit maximizing output and price (c) Explain how the amount of profit is defined at the maximum-profit output.
Price and co (dollars per hamburger) 5.00 4.30 4.00 330 3.00 2.50 2.00 1.30 MC X 1.00 0.50 MR D 0 10 20 30 40 50 Quantity (hamburgers per hour) Suppose the Busy Bee Café is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What quantity will the Busy Bee produce per hour in order to maximize its profit? OA. 20 OB. 10 O C. 50 OD.30
ssume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.
Economics Explain why a monopoly producer of shoes will not vertically integrate with perfect competitive distributors, and why a monopoly producer will vertically integrate with a monopoly distributor. Draw the appropriate graphs to explain these cases.
Do you agree or disagree with each of the following statements? Explain your reasoning. a. For a monopoly, price is equal to marginal revenue because a monopoly has the power to control price. b. Because a monopoly is the only firm in an industry, it can charge virtually any price for its product. c. It is always true that when demand elasticity is equal to –1, marginal revenue is equal to 0.