When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as necessary to keep operating and maximize profits O b. if the average variable cost is above its short run price O c. if the average cost is less than price O d. If the short run price is below its average fixed costs

When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as necessary to keep operating and maximize profits O b. if the average variable cost is above its short run price O c. if the average cost is less than price O d. If the short run price is below its average fixed costs

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Assuming that the price is greater than the average variable cost, a monopolist maximizes profits at the output for which (picture a graph): O price is equal to marginal revenue in the downward part of the marginal cost curve O marginal cost is equal to marginal revenue in the upward sloping part of the marginal cost curve O average variable cost and average total cost are in the downward part of their curves and price is equal to marginal cost O average total cost is at the lowest point
Figure Monpo12: A Fim in An Imperfectly Competitive Industry Price MC Given: Q* = 120 P* = S4.00 PATC = S3.40 P* %3D ATC AVC PATC PAVC PAVC = S0.50 D MR Q* Quantity Refer to Figure Monpo12. Profits for this monopoly is about O $72 O No answer text provided. O $74 O No answer text provided.
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In the United States, antitrust laws O A. regard excess competition as a felony under Section 3 of the Sherman Act. O B. place a maximum limit of 125 firms that are allowed to compete in any market. O C. do not always prosecute firms if they have fixed their prices. D. do not allow one person to be a director of two competing firms if being a member "substantially lessens competition". E. break up a company if it is too large because "size itself is an offense."
A monopolist faces the following demand curve: Price $10 $9 $8 $7 $6 $5 $4 $3 Quantity 5 Select one: O a. 31 units O b. 7 units O c. 16 units O d. 23 units 10 16 23 31 45 52 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output?
Prior to 1995, Thad only one beer producer a government-owned monopoly called Tawan Bear Suppose that while it was a monopoly. The company was un in a way to maximize peolt for the government. That is assume that it behaved like a private, pro maximizing monopolist Assuming demand and cost conditions are given on the following diagram, at what we would Taiwan Bear have targeted output and what price would it have charged Now suppose that while it was a monopoly Tewan Beer decided to compete in the highly competitive American market Assume further than maintained import barriers so that American producers could not sat in Taiwan but that they were not immediately reciprocated Assung Tan Beer could set all that it could produce in the American market at a price P Pund the wing given Q nalou oldi Tang The new price in Taiwan after the The output sold in the US is given by 0-0, Ta progiven by the re A P OF P OP by O market openss Price ($) P₂ MR Quantity MC AC PU.S. Drin
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For a single-price monopoly shown in the figure below, when its profit is maximized, output will be 95 19 15 45 65 MR MC ATC D 65 units per year and the price will be $15. O I choose to use one of my three skips on this question. O 45 units per year and the price will be $19. 65 units per year and the price will be $19. O 45 units per year and the price will be $15.
If a monopolist faces an inverse demand curve, p(y) = 100-2y and has constant marginal costs of $32 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be O a. $1,156. O b. $17. O c. $578. O d. $1,734. O e. $289.
The monopoly supply curve is the O same as the competitive market supply curve. O portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. O result of market power and production costs. O none of the above
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