wasepose that a monopolist is selling 50.000 units at a price of $1.000. They are paying $20 million in wages and $15 million in raw materials, The factory and equipment that they are renting (through an annual contract) costs $25 million, What happens in the short run in this market? a) Monopolist would continue producing b) Monopolist would shut down production c) Monopolist would charge the highest price possible do Suppose that a monopolist is selling 50,000 units at a price of $1,000. They are paying $20 million in wages and $15 million in raw materials. The factory and equipment that they are renting (through an annual contract) costs $25 million. What happens in the long run in this market? a) Monopolist would exit market b) Entrepreneurs would enter market c) Neither of the above
wasepose that a monopolist is selling 50.000 units at a price of $1.000. They are paying $20 million in wages and $15 million in raw materials, The factory and equipment that they are renting (through an annual contract) costs $25 million, What happens in the short run in this market? a) Monopolist would continue producing b) Monopolist would shut down production c) Monopolist would charge the highest price possible do Suppose that a monopolist is selling 50,000 units at a price of $1,000. They are paying $20 million in wages and $15 million in raw materials. The factory and equipment that they are renting (through an annual contract) costs $25 million. What happens in the long run in this market? a) Monopolist would exit market b) Entrepreneurs would enter market c) Neither of the above
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 8SQP
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Need question #5 and #6
Transcribed Image Text:wages and $15 million in raw materials. The factory and equipment that they are renting (through an
Q5 Suppose that a monopolist is selling 50,000 units at a price of $1,000. They are paying $20 million in
Q4 When the per-person value of a product rises with the total number of users of the product, that
vely efficient because monopolist produces and
lốt equal MC
b) P does not equal MC
C)P does not equal minimum ATC
d) consumer surplus is negative
product has the property of:
a) simultaneous consumption
b network effect
c) X-inefficiency
d) rent-seeking behavior
annual contract) costs $25 million, What happens in the short run in this market?
a) Monopolist would continue producing
b) Monopolist would shut down production
c) Monopolist would charge the highest price possible
do Suppose that a monopolist is selling 50,000 units at a price of $1,000. They are paying $20 million in
wages and $15 million in raw material:
annual contract) costs $25 million. What happens in the long run in this market?
factory and equipment that they are renting (through an
a) Monopolist would exit market
b) Entrepreneurs would enter market
c) Neither of the above
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