Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 17, Problem 5MCQ
To determine
To Choose:
The correct option that represents the profit in a monopolistic firm in the long run.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Imagine that in a certain industry (choose any) monopolistic competition is replaced by monopoly.
a. As a result of what can this happen? Describe a possible scenario.
b. Using demand, marginal cost, and marginal revenue graphs, show how this decrease in competition will change market prices. Make appropriate comments on the graphs, paying special attention to the direction of changes.
c. Describe what changes may occur in the methods of competition if the firm becomes a monopoly
Please A to D please please
Ron's Hamburger Place is the only restaurant in town, a monopoly
Price and cost (dollars per hamburger)
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0
Price: $ [Select]
ATC: $ [Select]
10
Profit: $ [Select]
dan da
MR
MC
Alt Text: Ron's Hamburger Place
What is the profit maximizing output, price, and economic profit of Ron's Hamburgers, monopoly?
Quantity: [Select]
hamburgers per hour
ATC
20
30
40
50
Quantity (hamburgers per hour)
per hamburger
Chapter 17 Solutions
Foundations of Economics (8th Edition)
Ch. 17 - Prob. 1SPPACh. 17 - Prob. 2SPPACh. 17 - Prob. 3SPPACh. 17 - Prob. 4SPPACh. 17 - Prob. 5SPPACh. 17 - Prob. 6SPPACh. 17 - Prob. 7SPPACh. 17 - Prob. 8SPPACh. 17 - Prob. 9SPPACh. 17 - Prob. 10SPPA
Ch. 17 - Washtenaw Dairy in Ann Arbor, Michigan, sells 63...Ch. 17 - Prob. 2IAPACh. 17 - Prob. 3IAPACh. 17 - Prob. 4IAPACh. 17 - Prob. 5IAPACh. 17 - Use the following information to work Problems 5...Ch. 17 - Prob. 7IAPACh. 17 - Prob. 8IAPACh. 17 - Prob. 9IAPACh. 17 - Prob. 1MCQCh. 17 - Prob. 2MCQCh. 17 - Prob. 3MCQCh. 17 - Prob. 4MCQCh. 17 - Prob. 5MCQCh. 17 - Prob. 6MCQCh. 17 - Prob. 7MCQ
Knowledge Booster
Similar questions
- Can you do a & b pleasearrow_forward3. The graph below shows a firm's demand, marginal revenue, and marginal cost curves. Find the profit-maximizing level of output and mark it q*. Find the price the firm should charge and mark it P*. P MC X D MR Quantity 4. The Whatsa Widget Company has a monopoly over the sale of widgets in a small midwestern town. The firm's demand, marginal revenue, marginal cost, and average cost curves are shown below. Find the firm's profit-maximizing level of output and the price the firm will charge. Is the firm earning a positive or a negative profit? Show the firm's profit (or loss) on the graph. P MC X MR D ATCarrow_forwardOne difference between a competitive firm and a monopoly is that __________________. a. monopoly makes economic profits, but a competitive firm never makes economic profits b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve c. the cost curves of a monopoly are always below those of a competitive firm d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scalearrow_forward
- When a firm or business holds a patent and has no competition in manufacturing a good or providing a service, it is known as _____. a. a technological monopoly b. a natural monopoly c. monopolistic competition d. perfect competitionarrow_forwardc. Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.arrow_forwardWhen a competitive market comes under the control of a monopoly, the price changes from: 1. D to E. 2. C to B. 3. C to A. 4. B to A. 5. A to C.arrow_forward
- The major difference between monopolistic competition and monopoly is a. how the quantity of output is determined. b. only a monopoly can earn an abnormal profit in the long run. c. monopoly is a price taker, and a firm in monopolistic competition is a price maker d. only firms in monopolistic competition are protected by barriers to entryarrow_forwardNeed Helparrow_forwardWhich of these situations is likely to produce a monopoly market structure? Group of answer choices a. Patent b. New design c. Great advertising d. Could be either a patent, new design or great advertisingarrow_forward
- The figure shows what type of market? >>Please add an explanation of how natural monopoly differs in graph vs. normal monopoly.arrow_forwardWhat does a firm that is a natural monopoly derive its market power from? Group of answer choices A. Control over a natural resource, like diamonds or crude oil B. Constantly increasing fixed costs C. Patents and other legal protections for innovative products D. Declining average cost for all levels of demandarrow_forwardWhat is the difference between a supply curve in perfect competition and supply curve in Monopoly. What conditions must exist in order for a monopolist to achieve economic profits in the long run? Explain any 2 barriers to entry in Monopoly.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning