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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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
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.
The monopoly supply curve is the O same as the competitive market supply curve. O portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. O result of market power and production costs. O none of the above
Exhibit 9-8 Profit maximizing for a monopolist Ps MC ATC P. Price, P3 costs, P2 and revenue P. (dollars) Ai MR Q, Quantity of output (units per time period) As shown in Exhibit 9-8, the monopolist's total cost is which of the following areas? O PIAEP5. O P2BDP4. O P3CDP5. O PĄDEP5. O None of these.
S 2
Please indicated each statement as correct or incorrect..
Answer to the question and reasoning involved please