Suppose a farmer earns a larger profit than the "normal profit" by producing a special type of vegetable that becomes popular other farmers are likely to plant the same vegetable, pushing down the prevailing market price. O the firm will continue to earn its "normal profits" far into the future. O the farm's owners are likely to withdraw from the industry in order to retire early. other farmers are likely to plant the same vegetable, pushing up the prevailing market price.
Suppose a farmer earns a larger profit than the "normal profit" by producing a special type of vegetable that becomes popular other farmers are likely to plant the same vegetable, pushing down the prevailing market price. O the firm will continue to earn its "normal profits" far into the future. O the farm's owners are likely to withdraw from the industry in order to retire early. other farmers are likely to plant the same vegetable, pushing up the prevailing market price.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter14: Monopoly
Section: Chapter Questions
Problem 4QR
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Question
![Suppose a farmer earns a larger profit than the "normal profit" by
producing a special type of vegetable that becomes popular
O other farmers are likely to plant the same vegetable, pushing down the
prevailing market price.
O the firm will continue to earn its "normal profits" far into the future.
O the farm's owners are likely to withdraw from the industry in order to retire
early.
O other farmers are likely to plant the same vegetable, pushing up the prevailing
market price.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91abe9f0-b445-4db1-bfa2-aff39bb2f72e%2F1b13b36e-c2b4-4e8c-afef-27fce930521b%2Fd84pvzx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose a farmer earns a larger profit than the "normal profit" by
producing a special type of vegetable that becomes popular
O other farmers are likely to plant the same vegetable, pushing down the
prevailing market price.
O the firm will continue to earn its "normal profits" far into the future.
O the farm's owners are likely to withdraw from the industry in order to retire
early.
O other farmers are likely to plant the same vegetable, pushing up the prevailing
market price.
![Table 6.1: A Monopoly
Price
Quantity
Marginal
(P)
(Q)
Cost (MC)
$12.00
$4.00
$11.00
9.
$5.00
$10.00
12
$6.00
$9.00
15
$7.00
$8.00
18
$8.00
$7.00
21
$9.00
Refer to Table 6.1. The monopoly can earn a maximum profits of about
dollars.
O 57.00
63.00
42.00
O 60.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F91abe9f0-b445-4db1-bfa2-aff39bb2f72e%2F1b13b36e-c2b4-4e8c-afef-27fce930521b%2Fz5iy5nl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Table 6.1: A Monopoly
Price
Quantity
Marginal
(P)
(Q)
Cost (MC)
$12.00
$4.00
$11.00
9.
$5.00
$10.00
12
$6.00
$9.00
15
$7.00
$8.00
18
$8.00
$7.00
21
$9.00
Refer to Table 6.1. The monopoly can earn a maximum profits of about
dollars.
O 57.00
63.00
42.00
O 60.00
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