Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Chapter 9, Problem 8SQ
To determine
The price chosen by the monopolist.
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Calculate the price in Country U using the following information in a Monopoly market
when there is a possibility for resale:
The elasticity of demand in Country J is -5.5 and Country U is -2.2
Marginal cost is $12.
a. $22
b. $22.5
c. -$22.5
d. $12
How does the monopoly quantity (assuming no price discrimination) compare to the competitive quantity? Assume normally shaped demand (decreasing, not completely elastic or inelastic )
a.The monopoly quantity is higher
b.The monopoly quantity is lower
c.There is not enough information provided to be sure.
d.The monopoly quantity is the same.
Which one?
Which of the followingbest describes the monopoly market? choose from answers below
Group of answer choices
a. Price < Marginal Cost
b. Price = Marginal Cost
c. Price > Marginal Cost
d. None of the above
Chapter 9 Solutions
Micro Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- When does a company officially become a monopoly? a. when it controls more than 25 percent of the output of a certain product b. when the government decides the company is a threat to the national economy c. when a company controls the output for a marketable product without meaningful competition d. when a company controls more than 50 percent of the output of a productarrow_forwardThe following figure shows the demand curve for Good X in a perfectly competitive market. Later, the government grants one of the firms the exclusive right to manufacture and sell Good X. MR represents the marginal revenue curve of the firm when it operates as a monopoly. The marginal cost of producing Good X is constant at $5. Price/Cost (S) 4 Demand 3 MR 2 1 10 11 12 13 14 15 16 17 18 Quantity (1,000 units) a) What is the quantity supplied when the market is perfectly competitive? What happens to the quantity supplied once the market changes to a monopoly? b) What is the market price when the market is perfectly competitive? What is the market price when the market changes to a monopoly? c) Compare the consumer surplus when the market is perfectly competitive and when the market is a monopoly. Is there any producer surplus or deadweight loss in either case? If yes, then how much?arrow_forwardDraw the graph. If the monopoly is a doing perfect price discrimination, then: the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?) the monopoly charges a price of ________ (trick question!!!!) the consumer surplus is CS = ______. the producer surplus is PS = _________(identify the area on the graph and calculate it). this monopoly ________ (is / is not) efficient because ______________________.arrow_forward
- Is monopoly a good way to organize a market?arrow_forwardWhat will happen if a monopoly raises its price? a Quantity demanded will increase. b Quantity demanded will stay the same. c Quantity demanded will fall to zero. d Quantity demanded will fall, but not necessarily to zero.arrow_forwardEconomists use the model of supply and demand to analyze on the market price. Operfect, monopoly monopoly, competitive O competitive, competitive monopoly, monopoly competitive, monopoly markets. In a market, there are many buyers and sellers, each of whom has little or no influencearrow_forward
- When a monopoly is producing profit-maximizing quantity, what is the relationship between marginal cost and price? a Marginal cost is greater than the price. b Marginal cost is equal to the price. c Marginal cost is less than the price.arrow_forwardHot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Calculate Hot Air's profit-maximizing output and price. Calculate the economic profit. Hot Air's profit-maximizing number of rides is 3 a month and the profit-maximizing price is $160 a ride. >>> Answer to 1 decimal place. C Price (dollars per ride) 220 200 180 160 140 120 Quantity (rides per month) ܘ ܝ ܚ ܚ ܟ ܗ 2 3 4 5 Total cost (dollars per month) 80 160 280 440 640 880arrow_forwardAssume that a monopoly loses money in the short run but stays in business. in a graph show the monopolists output, price and the total loss. what will happen in the long run?arrow_forward
- A natural monopoly occurs when A. marginal cost is constant. B. average cost is declining. C. marginal cost is below average cost. D. All of the above are true.arrow_forwardhey how are you a)Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. b)Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. c)Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.arrow_forwardWhich of the following is not a characteristic of a monopolist? A. A monopolist can sell as much as he/she wants to. B. A monopolist is a price maker. C. A monopolist faces the market demand curve. D. A monopolist is protected from competition. E. A monopolist can earn economic profits.arrow_forward
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