For a monopoly , Profit maximization condition and its price and output level.

Question

2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

Answer 1

Question

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

B

To determine

For a monopoly,

Reason behind MR

C

To determine

For a monopoly,

Show deadweight loss

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

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2. Consider the following table of long-run total costs for three different firms: Quantity Total Cost ($) Firm A Firm B Firm C 1 60 11 21 2 70 24 34 3 80 39 49 4 90 56 66 5 100 75 85 6 110 96 106 7 120 119 129 Does each of these firms experience economies of scale or diseconomies of scale? Explain your answer with necessary calculations.

1. Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3 apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added 5 units to Sadid's utility, while the last bread added 7 units. Is Riaz making the utility-maximizing choice? Why or why not? Do you suggest any adjustment in Riaz's consumption bundle? Why or why not? Give reasons in support of your answer. State the condition for a consumer's utility maximizing choice and illustrate graphically.

Riaz has a limited income and consumes only Apple and Bread. His current consumption choice is 3apples and 5 bread. The price of apple is $3 each, and the price of bread is $2.5 each. The last apple added5 units to Sadid’s utility, while the last bread added 7 units.

Answer 2

Question

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

B

To determine

For a monopoly,

Reason behind MR

C

To determine

For a monopoly,

Show deadweight loss

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

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Answer 3

Question

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

B

To determine

For a monopoly,

Reason behind MR

C

To determine

For a monopoly,

Show deadweight loss

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

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Answer 4

Question

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

B

To determine

For a monopoly,

Reason behind MR

C

To determine

For a monopoly,

Show deadweight loss

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Expert Solution & Answer

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Answer 5

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

B

To determine

For a monopoly,

Reason behind MR

C

To determine

For a monopoly,

Show deadweight loss

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Answer 6

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

Answer 7

Chapter 9, Problem 3P

A

To determine

For a monopoly,

Profit maximization condition and its price and output level.

Answer 8

B

To determine

For a monopoly,

Reason behind MR

Answer 9

B

To determine

For a monopoly,

Reason behind MR

Answer 10

C

To determine

For a monopoly,

Show deadweight loss

Answer 11

C

To determine

For a monopoly,

Show deadweight loss

Answer 12

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Answer 13

D

To determine

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Answer 14

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Answer 15

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Ch. 9 - Prob. 1P Ch. 9 - Prob. 2P Ch. 9 - Prob. 3P Ch. 9 - Prob. 4P Ch. 9 - Prob. 5P Ch. 9 - Prob. 6P Ch. 9 - Prob. 7P Ch. 9 - Prob. 8P Ch. 9 - Prob. 9P Ch. 9 - Prob. 10P

For a monopoly , Profit maximization condition and its price and output level.

Solution Summary: The author explains a monopoly's profit maximization condition and its price and output level.

For a monopoly,

Profit maximization condition and its price and output level.

For a monopoly,

Reason behind MR

For a monopoly,

Show deadweight loss

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Chapter 9 Solutions

For a monopoly , Profit maximization condition and its price and output level.

Solution Summary: The author explains a monopoly's profit maximization condition and its price and output level.

For a monopoly, Profit maximization condition and its price and output level.

For a monopoly, Reason behind MR

For a monopoly, Show deadweight loss

For a monopoly, If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.

Chapter 9 Solutions

For a monopoly,

Profit maximization condition and its price and output level.

For a monopoly,

Reason behind MR

For a monopoly,

Show deadweight loss

For a monopoly,

If Greeks decide to charge royalty fee per ring from Manufacturer, what would happen to price and output.