The four statements below describe different characteristics of a möhopolist, But statemenit is faise. Pick the one option that is false. Select one: A monopolist has a downward sloping demand curve O i. O ii. A monopolist can increase price if it reduces the quantity sold iii. A monopolist profit maximises by producing at the point where price = marginal cost O iv. A monopolist profit maximises by producing at the point where marginal revenue = marginal cost

The four statements below describe different characteristics of a möhopolist, But statemenit is faise. Pick the one option that is false. Select one: A monopolist has a downward sloping demand curve O i. O ii. A monopolist can increase price if it reduces the quantity sold iii. A monopolist profit maximises by producing at the point where price = marginal cost O iv. A monopolist profit maximises by producing at the point where marginal revenue = marginal cost

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 7SQP

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Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
A monopolist has a total cost curve represented by TC = 50 + 2Q + Q², and a marginal cost curve represented by MC = 2 + 2Q. The monopolist faces the demand curve P = 100 –3Q. Price is in dollars and quantity is in thousands. What is the monopolist's profit? (pick the closest answer) O $1,000,600 O $550,250 $750,000 O $330,330 A Moving to another question will save this response. Question 28 of 40 20 MacBook Air esc F1 F2 F3 F4 $ % & 4 5 6 Q W E R tab Y A D F G # 3 © 2N
The four statements below describe different characteristics of a monopolist, but one statement is false. Pick the one option that is false. Select one: O i. A monopolist has a downward sloping demand curve O ii. A monopolist can increase price if it reduces the quantity sold iii. A monopolist's marginal revenue curve is always below its demand curve O iv. Amonopolist profit maximises by producing at the point where marginal revenue = price
es The following table contains demand and cost data for a monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) What output will the monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output? Quantity Price Total revenue Marginal revenue Total cost Marginal cost O $34 $ 1 32 30 28 26 24 22 20 18 16 14 234 5678 9 10 $ $20 36 46 50 54 56 64 80 100 128 160 $
If the average total cost curve is always above the demand curve of a monopolist, what can we conclude about the monopolist's performance? The monopolist will earn an economic profit. O Entry will occur, forcing the monopolist to reduce price and expand output. The monopolist will suffer economic losses. O The monopolist must be producing inefficiently.
If a monopolist with significant barriers to entry is making positive economic profit in the short run, what do we expect to happen as the market transitions to the long run? O The profit will increase since the monopolist has no competition, they can just raise the price to earn higher profits. O It will decrease as positive economic profit signals new firms to enter the market, increasing the market supply, and lowering the prevailing price. O It will increase, in the long run firms will drop out the market increasing the monopolists dominance in the marketplace. O The profit will stay the same, strong barriers to entry prevent new competition.
Which statement is correct? A monopolist will produce less than the efficient level of output. A monopolist will produce an efficient level of output. O A monopolist will produce more than the efficient level of output.
A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.
Assume the only costs to the firm are marginal costs (so MC-ATC in this case) and that the firm/s cannot price discriminate. Price, cost, marginal revenue of diamond $1,000 800 600 400 200 MC -200 -400 MR 8 10 16 20 Quantity of diamonds (See Figure 3) At the profit maximizing quantity for the monopolist, total revenue is total cost is and profit is O $4800, $3200, $1600 O $1600, $3200, $1600 O $600, $200, $400 O $4800, $1600, $3200
A monopolist faces the demand curve illustrated below. 12 9 -1 -2 12 13 11 15 15 1 1s 19 20 21 22 23 24 Suppose the monopolist faces a marginal cost of $5, and that there are no fixed costs. Thus, the marginal cost is equal to the average total cost in this case. Given this, what is the monopolist's profit maximizing price if it is not able to price discriminate O $5 O $8.33 O $2 O $10 $7.50 N O087654321
Question 25 The change in total revenue that results from a one-unit increase in quantity sold is marginal revenue. By this definition, the marginal revenue of a monopolist is: O Always equal to price O Above price because the firmi is a price setter O Less than price because to sell more output the firm must reduce the price on all units sold O Less than price because a monopolist is a price taker
Cost & Figure 15 Revenue $10 per unit MC $9 $8 АТС $7 $6 $5 $4 $3 $2 $1 MR 2 3 4 7 8 10 Quantity (in thousands) Refer to the above Figure 15 which shows cost curves, a marginal revenue (MR) curve and a demand curve faced by a monopolist. If this monopolist is profit maximizing and does not price discriminate, it will produce ( Select ] v units of output and charge a price of [ Select ] per unit. Given its cost curves, we can tell that this monopolist is currently earning [ Select ] economic profit. According to the classical welfare economics, the socially efficient quantity to be produced in this market would be [ Select ] units of output and a socially efficient price would be [Select ] per unit.