CONNECT F/MICROECONOMICS
21st Edition
ISBN: 2810022151240
Author: McConnell
Publisher: MCG
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Question
Chapter 12, Problem 9DQ
To determine
Natural monopoly and price decision.
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Check out a sample textbook solutionStudents have asked these similar questions
1. At what output rate and price does the monopolist operate?
2. In equilibrium, approximately what is the firm’s total cost and total revenue?
3. What is the firm’s economic profit or loss in equilibrium?
The figure on the right shows the demand schedule for a product produced by a
single-price monopolist.
Price ($)
9
8
0000
7
6
5
4
3
C. 5th unit
Quantity
demanded
What is the lowest level of output at which marginal revenue becomes negative?
OA. 6th unit
OB. 9th unit
D. 7th unit
OE. 8th unit
5
6
7
8
9
10
11
Price ($)
141
222 =26=LO
13-
12-
11-
10-
9-
8-
4-
2-
1-
45 6 7 8 9 10 11 12 13 14 15 16
Quantity
E
Question 17
3아-
MC
ATC
26
27
26
25
24
AVC
20
MR
100
190
260 300
400
What is the optimal output and price for the prafit maximizing, nondiscriminating monopolist in the exhibit above?
O 190 and $30
O 190 and $26
O 190 and $25
O 260 and $28
O 300 and $27
D Question 18
$/9
30-
MC
ATC
28
27
AVC
26
25
24
D.
2아
MR
100
190
260 300
400
Total cost for this nondiscriminating monopolist at its profit-maximizing output level in the exhibit above is
O $7280
O $4750
$5700
None of the choices are correct
O $4940
D
Question 19
Why is collusian to raise prices highly unlikely among firms in perfectly competitive industries?
O All the firms in competitive industries love their consumers too much to ever collude against them
O There is only one firm in perfectly competitive industries, so whom would they collude with?
• There are too many firms in perfectly competitive industries.
O The products are too differentiated for collusion in perfectly competitive industries
3 This is a trick question because…
Chapter 12 Solutions
CONNECT F/MICROECONOMICS
Ch. 12.4 - The MR curve lies below the demand curve in this...Ch. 12.4 - Prob. 2QQCh. 12.4 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQ
Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - 10. LAST WORD Using Big Data to set personalized...Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
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- Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 3 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $118.00 O $112.00 O $110.00 O$120.00 2.arrow_forwardFigure 15-6 Price Marginal Cost $20 15 10 Demand 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. To maximize its profit, a monopolist would • choose which of the following outcomes? O100 units of output and a price of $20 per unit 200 units of output and a price of $20 per unit 150 units of output and a price of $15 per unit 100 units of output and a price of $10 per unit « Previous Nextarrow_forward500 450 400 出350 300 250 是 200 150 LRAC 100 MC 50 MR 3 4 Quantity (hundreds of trips per month) If a marginal cost pricing rule is imposed on the single-price natural monopoly in the figure above, then the deadweight loss will be per month. If a marginal cost pricing rule is imposed on the single-price natural monopoly in the figure above, then the deadweight loss will be per month. $20,000 O so $40,000 O$80,000 $45,000 $5,000 Price and costs (dollars per trip)arrow_forward
- A monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the following p= 100-2Q. If the monopolist is a perfect price discriminating monopolist its level of profit will be equal to (assume there is no fixed cost): O 1225. O 2450. O2275. O 1150. auto.proctoru.com is sharing your screen. Stop sharing Hide Next • Previous UN 18 SAParrow_forwardThe following diagram depicts the operating conditions for a profit-maximising monopolist. Calculate the deadweight loss created by this monopoly selling at the profit maximising point. Price ($) MC 10 Demand MR 5 7.5 10 Quantity (a) $4.25 (b) $6.25 (c) $8.25 (d) None of the above. 20 15 LO 20 15arrow_forwardUnsure of what I have so far is correct and unsure how to solve the restarrow_forward
- Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardPrice $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 300 600 700 800 Quantity per day Refer to the graph above. Assuming that this monopolist maximizes profit, it will produce: MR O 800 units of output per day. O 700 units of output per day. O 600 units of output per day. O 300 units of output per day. MC ACarrow_forwardSuppose that demand is Qlp)-2000-4p. Consider the marginal revenue curve of a monopolist who operates in this market. Assume that it is plotted on a two-axis graph in which the horizontal axis measures quantities and the vertical axis measures marginal revenue. What is the horizontal intercept of the marginal revenue curve? O 500 O 750 O 1000 O 2000 O 250arrow_forward
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