Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
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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Students have asked these similar questions
(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
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 | |
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3.
Chapter 9 Solutions
Econ Micro (book Only)
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- ICE (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_forward4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 0 -20 100 200 300 400 FMC 500 AC AR 600 MR Quantity (a) What is the maximum-profit output?. (b) What is the maximum-profit price? (c) What is the total revenue at this price and output? (d) What is the total cost at this price and output? (e) What is the level of profit at this price and output? (f) If the monopolist were ordered to produce 300 units, what would be the market price? (g) How much profit would now be made? (h) If the monopolist were faced with the same demand, but average costs were constant $60 per unit, what output would maximise profit? (i) What would be the price now? (j) How much profit would now be made? (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of $40. How much will now be sold?.arrow_forwardSub : economics ( Regulating a natural monopoly)Pls answer Fast. i ll upvote. Thank Youarrow_forward
- Question 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_forward6arrow_forward
- 5. 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 Market for Designer Boots in Monopolistic Competition III) Use Figure: The Market for Designer Boots in Monopolistic Competition. The amount of economic loss per unit is the vertical distance between points: Price, cost (c) MC I J X and T. U and W. V and W. V and T. X U W ATC MR D Quantity (per period)arrow_forwardGRADUATE STUDIES Practice Question 1 The table below shows the demand for a product produced by a monopolist, who has a constant marginal cost and an average total cost of GH¢45.00 per Quantity (thousand's of units) Price (cedis per unit) 0 120 1 105 2 90 3 75 4 60 5 45 6 30 UPSA 25 GRADUATE STUDIES a. Calculate the total revenue and marginal revenue for each level of quantity. b. What are the profit-maximizing level of output and the price of the product? c. Calculate the Lerner Index for the industry.arrow_forward
- please include graph please answer both sub partsarrow_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_forward1. The profit maximizing quantity for this firm it is 2. The profit maximizing price for this firm is 3. The profit made by this profit maximizing firm isarrow_forward
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