Which of the following are characteristics of a monopoly market? (Check all thatapply.)In the short run, positive economic profit possibleP > MC at the profit maximizing quantityIn the long run, positive economic profit possibleIn the short run, only zero economic profit possibleV Significant barriers to entryIn the long run, firms operate at the minimum of the ATC curveMR = MC at the profit maximizing quantityUEasy entry/exitOP = MC at the profit maximizing quantityIn the long run, only zero economic profit possible

Monopoly is a form of market structure in which a single firm sells a commodity for which there are…

Which of the following are characteristics of a monopoly market? (Check all that apply.) In the short run, positive economic profit possible P > MC at the profit maximizing quantity O In the long run, positive economic profit possible In the short run, only zero economic profit possible Significant barriers to entry In the long run, firms operate at the minimum of the ATC curve O MR = MC at the profit maximizing quantity Easy entry/exit P = MC at the profit maximizing quantity In the long run, only zero economic profit possible

Which of the following are characteristics of a monopoly market? (Check all that apply.) In the short run, positive economic profit possible P > MC at the profit maximizing quantity O In the long run, positive economic profit possible In the short run, only zero economic profit possible Significant barriers to entry In the long run, firms operate at the minimum of the ATC curve O MR = MC at the profit maximizing quantity Easy entry/exit P = MC at the profit maximizing quantity In the long run, only zero economic profit possible

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following is true of a natural monopoly? The firm is not protected by any barrier to entry. B Economies of scale exist to only a very low level of output. Its long-run average cost curve slopes upward as it intersects the demand curve. The firm can supply the entire market at a lower price than could two or more firms.
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A patent gave Sony a legal monopoly to produce a robot dog called Aibo. The Chihuahua-size pooch robot can sit, chase balls, dance, and play an electronic tune. When Sony started selling the toy in July 1999, it announced that it would sell 3,000 Aibo robots in Japan for about $2,000 each and a limited litter of in the United States for $2,500 each. Suppose that Sony's marginal cost of producing Aibos is $500.Its inverse demand curve is Pj= 3500−0.5Qj in Japan and Pa =4500−Qa Solve for the equilibrium prices and quantities (assuming that U.S. customers cannot buy robots from Japan). The equilibrium quantity in Japan is ____and the price, Pj is $____
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