The graph shows the cost and revenue curves for a profit-maximizing mm. Which of the following is true about the firm? Price, Cost ($) O P3 P2 P₁ Marginal Cost Average Total Cost 0 Marginal Revenue Demand Q₁ The firm operates in a perfectly competitive market, producing the allocatively efficient quantity and charging P1. Quantity O The firm is a monopolist, producing the allocatively efficient quantity and charging P1. The firm is a natural monopoly, producing Q1 and earning positive economic profit. The firm operates in an imperfectly competitive market, producing Q1 and earning positive economic profit The firm operates in a monopolistically competitive market, producing Q1 and earning negative economic profit

The graph shows the cost and revenue curves for a profit-maximizing mm. Which of the following is true about the firm? Price, Cost ($) O P3 P2 P₁ Marginal Cost Average Total Cost 0 Marginal Revenue Demand Q₁ The firm operates in a perfectly competitive market, producing the allocatively efficient quantity and charging P1. Quantity O The firm is a monopolist, producing the allocatively efficient quantity and charging P1. The firm is a natural monopoly, producing Q1 and earning positive economic profit. The firm operates in an imperfectly competitive market, producing Q1 and earning positive economic profit The firm operates in a monopolistically competitive market, producing Q1 and earning negative economic profit

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Seema can sell 10 sweaters for $70 each, 20 sweaters for $60 each, 30 sweaters for $50 each, 40 sweaters for $40 each, and 50 sweaters for $30 each. Her marginal cost of production is constant at $30 for each additional unit (or sweater) produced. If she behaves like a monopolist, what is the number of sweaters she will sell? a. 20 b. 30 c. 40 d. 50
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Which of the following statements about monopolies are correct? There is more than one correct answer to this question. You must mark all of the correct answers to receive full credit for this question. OAt the profit maximizing output for a monopoly, P< MR. OMonopolies are always illegal in the U.S. O If a firm enjoys decreasing returns to scale, this may help it to become a monopoly. In a pure monopoly, the firm is the industry. O A patent can help a firm to become a monopoly.
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)
(a) Does a monopolistically competitive firm have an incentive to produce at the level of output that minimizes the average total cost at the long run equilibrium? Explain with a diagram. (b) Suppose CLP Holdings Limited is a natural monopolist with constant marginal cost. Draw a diagram to indicate the profit-maximizing level of output, the profit-maximizing price, and the size of the profit. If the government wants to increase the market efficiency through price regulation, would you suggest the government setting the price equal to the firm’s marginal cost or its average total cost? Explain in detail with the diagram in part (i).
Answer the question by referring to the table below. The table shows the demand curve facing a monopolistwho produces at constant marginal cost of 6. In short-run equilibrium, the monopolist will produceQuantity Price10 1020 930 840 750 660 5a) 20 unitsb) 30 unitsc) 40 unitsd) 50 units
a. what is the optimal quantity of goods for the firm to produce b. what is the optimal price for the quantity of goods for the firm to produce c. what is the total revenue for the firm d. what is the total cost for the firm e. what is profit/loss for the firm
Please no written by hand solutions 1. Assume the cost function for a monopolist is given by TC(q) = 30Q; the inverse demand function for the firms' output is p = 120 - Q, where Q is the total output. a. Find the profit-maximizing combination of price and quantity b. Estimate consumer surplus, producer surplus and the deadweight loss associated with this monopolist C. If this industry became perfectly competitive, explain and estimate the consumer surplus, producer surplus and deadweight loss of the industry d. Graph your answers for a, b, and c 2. Now assume that the monopolist above splits into two. Each of two firms has the cost function TC(q) = 30q. a. What are the firms' outputs in a Nash equilibrium of Cournot's model? b. Estimate the economic profits for each firm c. If firm 1 is the leader and firm 2 the follower, find the equilibrium outputs for the Stackelberg solution.
If the on-campus demand for soda is as follows: Price (per can) Quantity demanded (per day) 1.50 b. A monopolized market? tA $3.00 $2.75 $2.50 $2.25 30 40 50 60 and the marginal cost of supplying a soda is $2.00, what price will students end up paying in Instructions: Round your responses to two decimal places. a. A perfectly competitive market? $ 2.50 $2.00 $1.75 $1.50 $1.25 80 100 70 90
The graph shown represents the cost and revenue curves faced by a monopoly. 22 P3 P2 P1 PO MC ATC Q1 Q2 MR Which of the following statements is true? 1. The outcome in a monopoly market would be Q1, P1. II. The outcome in a perfectly competitive market would be Q2, P2. III. The efficient outcome is Q2, P2. Multiple Choice I and II only ○ I only II and Ill only I, II, and III b
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working