Reference Figure 3. Assume that this is a monopolist. Assume price = P1 and output = Q2. Which of the following is true? Figure 3 Cost and Revenue($) P₂ P₁ Po 0,0₁ B O the firm should expland output O the firm should raise price O The firm should lower price O The firm is maximizing profit Quantity

Reference Figure 3. Assume that this is a monopolist. Assume price = P1 and output = Q2. Which of the following is true? Figure 3 Cost and Revenue($) P₂ P₁ Po 0,0₁ B O the firm should expland output O the firm should raise price O The firm should lower price O The firm is maximizing profit Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls help with below homework.
The graph below depicts the demand curve facing a monopolist. The monopoly has constant marginal costs of $5. On the graph: A). Use the straight line tool to draw the marginal revenue curve. B) use the straight line tool to draw the marginal cost curve up to 60 units of output C) use the point tool to plot the profit maximization point on the demand curve.
Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar.a. Based on the given information, explain with TWO practical reasons whether theairline should charge a higher price on business travelers or vocational travelers.Explain without calculation.
A firm in a monopolistically competitive market has a monopoly power because: O There are very few other sellers in the market. There are many firms selling similar products. The firm is not concerned with entry of new firms. The firm's product is differentiated. ◄ Previous MAY 4 Next Not saved Submit tv
For the monopoly shown above, which of the following best describes its practices? Price, Costs MC ATC D P3. P2. P1 MR Q2 Q1 Demand Quantity OA Operating with profit of area AP1ED OB. Operating at a loss of area ABEC C. Shutting down OD, Breaking even, with a deadweight loss to society of area DCE DE. Operating with profit area ADEP1 and deadweight loss to society of area DCE
The figure shows the demand curve faced by a monopolist. What is the price effect of a price increase from $3 to $5? OA. $800 OB. $400 OC. $1,000 OD. $200 C Price (5) 10 9 8 17 6 3 2 1 0 100 200 300 400 500 600 700 800 900 Quantity (units)
Question 9 Because a monopolist has market power, which of the following is NOT a characteristic of a monopolist? O It faces a horizontal demand curve O It faces a downward-sloping demand curve O When it produces an extra unit of output, it must lower its price for on all units sold O Its marginal revenue curve is below its demand curve
None
If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 O $450.00 $900.00 $0.00 $225.00 O $1,200.00 30 50 60 MR 100 MC Quantity
Quèstion 23 A monopolist maximizes profits by O charging a price where marginal cost equals average total cost O charging a price equal to marginal revenue and marginal cost O producing an output level where marginal revenue equals marginal cost Both a and b are correct
Question 30 Demand: P=120-Q Marginal Revenue: MR=120-2Q Total Cost: TC=Q² Marginal Cost: MC=2Q For this monopolist, the profit-maximizing price is and the profit-maximizing quantity is 90, 30 30, 90 40, 80 None of these answers O O O
If a monopolist faces an inverse demand curve, p(y) = 100-2y and has constant marginal costs of $32 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be O a. $1,156. O b. $17. O c. $578. O d. $1,734. O e. $289.