ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN: 9781337408059
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 9, Problem 4P
To determine
a.
Output and
Concept Introduction:
A market with the single seller and large number of buyers is referred as
To determine
b.
Firm’s total cost and total revenue.
Concept Introduction:
A market with the single seller and large number of buyers is referred as monopoly market. In this market structure, the competition among sellers does not exist, because single seller prevails in the market.
To determine
c.
Firm’s economic
Concept Introduction:
A market with the single seller and large number of buyers is referred as monopoly market. In this market structure, the competition among sellers does not exist, because single seller prevails in the market.
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(Use Graph C) For this monopolist, at the profit maximizing level of output,
MC
Graph C
Price
ATC
$25
$20
$10
D
MR
50
100
Quantity
1) profit is $5 per unit sold.
2) total economic profit is negative $1000.
○ 3) total economic profit is $1250.
4) total economic profit is negative $250.
Sub : Economics ( Regulating a natural monopoly)Pls answer Fastt. i ll upvote. Thank You
(Figure: Demand, Revenue, and Cost Curves for Thneeds) Use Figure: Demand, Revenue, and Cost Curves for Thneeds.
Thneeds and Things is a monopolist in the thneed ("things we need") market. If the government wants to regulate Thneeds
so that an efficient outcome is reached, it would impose a price ceiling of:
Price of
thneeds
$100
90
$40.
$46.
$50.
$65.
80
70
60
50
40
30
20
10
0 20
MR
D
MC
ATC
60 100 140 180 220
Quantity of thneeds
Chapter 9 Solutions
ECON MICRO (with MindTap, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
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- 2. The demand schedule for the product produced by a monopolist is given in the table below. Complete the table by computing total revenue and marginal revenue. Quantity Total Marginal demanded Price (a) What do the data in the table indicate about revenue revenue the relationship between total revenue and 1 $325 $. marginal revenue? Explain. 300 275 4 250 225 6. 200 7 175 8 150 6. 125 (b) What do the data in the table indicate about 10 100 the elasticity of demand? 11 75 12 50 13 25 14 | | | | | | | |I | | %24 3.arrow_forwardICE (Dollars per scooter) 3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss 500 450 400 360 200 250 200 150 400 50 MC- ATC MR Demand 150 200 250 300 360 400 450 500 QUANTITY (Scooters) + Monopolistically Competitive Outcome Profit or Loss (?) Given the profit-maximizing choice of output and price, Citrus Scooters is earning sellers in the industry relative to the long-run equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and…arrow_forwardQ5. The graph below represents a monopoly firm. Answer the questions below. ( a. Briefly explain three ways in which pricing can be set with a regulated monopoly and the intended objective of each pricing method.b. Based on the diagram, if this monopoly firm is unregulated, what will be its profit? Show your calculations.c. Based on the diagram, if this firm is regulated based on social interest theory, what will be its profit? Show and explain your calculations.d. Based on the diagram, if this monopoly is subject to rate of return regulation, what will be the new price, output and profit of the firm? Show your calculations with explanations.e. Based on the diagram, if this is a natural monopoly that is allowed to set its price, what will be the minimum it should set in order to make a profit or break even? Explain your answer.arrow_forward
- Sub : economics ( Regulating a natural monopoly)Pls answer Fast. i ll upvote. Thank Youarrow_forwardQuestion 38 An unregulated monopoly finds that its marginal cost exceeds its marginal revenue. In order to increase its profit, the firm will OA. raise its price and move to the segment of the demand line where PED exceeds 1 in absolute value. B. raise its price, increase its output, and move the segment of the demand line above the point where PED equals 1. OC. lower its price, increase its output, and shift to the segment of the demand line where PED exceeds 1 in absolute value. O D.continue to produce this level of output because any change will lower its profit.arrow_forward(a) What is meant by consumer surplus and producer surplus? Using a diagram show that there is a deadweight loss to society from monopoly in terms of total surplus. (b) In what ways is a monopolistically competitive firm likely to be less efficient than one under perfect competition?arrow_forward
- 6arrow_forwardSub : Economics Please solve fast. i ll upvote. Thank Youarrow_forward5. Conditions for price discrimination Price discrimination is the practice of charging different prices for the same product that are not justified by cost differences. Evaluate the following statement: "Price discrimination requires market segmentation." False, because the monopolist can never charge anyone their maximum willingness to pay anyway False, because the monopolist does not need to know people's willingness to pay for its goods None of these choices True, because the monopolist needs to know the willingness to pay of different groups of consumersarrow_forward
- (Figure: The Environmental Monopolist II) Use Figure: The Environmental Monopolist II. If this monopolist perfectly price-discriminates, then it will produce _____ units. This will lead to producer surplus equal to _____, consumer surplus equal to _____, and a deadweight loss equal to _____. O. $35; $1,225; $612.50; $612.50 O. $70; $2,450; $0; $0 O. $50; $1,225; $0; $0 O. $100; $1,500; $612.50; $612.50arrow_forward#7 pleasearrow_forward(Figure: Demand, Revenue, and Cost Curves for Thnceds) Use Figure: Demand, Revenue, and Cost Curves for Thneeds. Thneeds and Things is a monopolist in the thneed ("things we need") market. To maximize profit, Thneeds and Things will sell thneeds and at a price of Price of thneeds $100 90 80 70 60 MC ATC 50 40 30 20 MR 10 20 60 100 140 180 220 Quantity of thneeds 70, $65 O b. 100; $50 O c. 120: $40 O d. 150: $46arrow_forward
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