The diagram on the right shows a firm (industry) that eams a normal return to capital if organized competitively Price in the market place is P, under competition. We assume at first that marginal cost is fixed at $40 per unit of output and that there are no economies or diseconomies of scale Total revenue for the competitive firm, assuming free entry, is $ (Enter your response as an integer) Total cost to the competitive firm, assuming free entry, is $(Enter your response as an integer.) Consumer surplus under competition is $. (Enter your response as an an integer) Now assume that you bought all the fiems in this industry, combining them into a single-firm monopoly protected from entry by a patent. The profit-maximizing price, Pfor a monopoly is $ Total revenue from the monopoly is $(Enter your response as an integer) Total cost for a monopoly is $ (Enter your response as an integer) Total profit for a monopoly is $ (Enter your response as an integer) Consumer surplus for a monopoly is $. (Enter your response as an integer) (Enter your response as an integer) The deadweight loss for a monopoly is $ (Enter your response as an integer) Which of the following expresses the correct set of relationships? OA. PuPoi QuQc: CS CSc OB. PuPo: Qu CSc OD. PMPC QuQci CSM CSc What potential remedies to a monopoly are available? botan) S 20 80 565 Pc=$40 MRm 3,000 4000 MC- $40 7,200 Dm 12.000 10000 1.000 Units of output. Q a
The diagram on the right shows a firm (industry) that eams a normal return to capital if organized competitively Price in the market place is P, under competition. We assume at first that marginal cost is fixed at $40 per unit of output and that there are no economies or diseconomies of scale Total revenue for the competitive firm, assuming free entry, is $ (Enter your response as an integer) Total cost to the competitive firm, assuming free entry, is $(Enter your response as an integer.) Consumer surplus under competition is $. (Enter your response as an an integer) Now assume that you bought all the fiems in this industry, combining them into a single-firm monopoly protected from entry by a patent. The profit-maximizing price, Pfor a monopoly is $ Total revenue from the monopoly is $(Enter your response as an integer) Total cost for a monopoly is $ (Enter your response as an integer) Total profit for a monopoly is $ (Enter your response as an integer) Consumer surplus for a monopoly is $. (Enter your response as an integer) (Enter your response as an integer) The deadweight loss for a monopoly is $ (Enter your response as an integer) Which of the following expresses the correct set of relationships? OA. PuPoi QuQc: CS CSc OB. PuPo: Qu CSc OD. PMPC QuQci CSM CSc What potential remedies to a monopoly are available? botan) S 20 80 565 Pc=$40 MRm 3,000 4000 MC- $40 7,200 Dm 12.000 10000 1.000 Units of output. Q a
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The diagram on the right shows a firm (industry) that eams a normal return to capital if organized
competitively Price in the market place is P, under competition. We assume at first that marginal
cost is fixed at $40 per unit of output and that there are no economies or diseconomies of scale
Total revenue for the competitive firm, assuming free entry, is $ (Enter your response as an
integer)
Total cost to the competitive firm, assuming free entry, is $(Enter your response as an integer.)
Consumer surplus under competition is $. (Enter your response as an a
an integer)
Now assume that you bought all the fiems in this industry, combining them into a single-firm
monopoly protected from entry by a patent.
The profit-maximizing price, Pfor a monopoly is $ (Enter your response as an integer)
Total revenue from the monopoly is $(Enter your response as an integer)
Total cost for a monopoly is $. (Enter your response as an integer)
Total profit for a monopoly is $(Enter your response as an integer)
Consumer surplus for a monopoly is $. (Enter your response as an integer)
The deadweight loss for a monopoly is $ (Enter your response as an integer)
Which of the following expresses the correct set of relationships?
OA. PuPoi QuQc: CS CSc
OB. PuPo: Qu <Qc: CSM Cic
OC. Pu<Pci QuQc: CSM> CS
OD. PMPC: Qu>Qci CSM CSc
What potential remedies to a monopoly are available?
botan)
S
20
80
563
Pc=$40
MRm
3.000
4.000
MC-$40
7,200
1.000
Units of output. Q
12.000
Dm
10000
a
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