Question
In: Economics
Exhibit 2 Quantity Sold Price (units) Total Cost $10 10 $80 9 20 100 8 30...
Exhibit 2 Quantity Sold Price (units) Total Cost $10 10 $80 9 20 100 8 30 130 7 40 170 6 50 230 5 60 300 4 70 380 A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. Refer to Exhibit 2. A single-price monopolist that seeks to maximize profits will sell __________ units and charge a per-unit price of __________. Group of answer choices
20; $9
40; $7
50; $6
10; $10
7; $40
Solutions
Expert Solution
Answer-B 40; $ 7
A single-price monopolist that seeks to maximize profits will sell 40 or 30 units and charge a per-unit price of $ 7 or $ 8.
But as per given group choices answer is 40 units and $ 7.
When the result of total revenue-total cost is maximum, the profit is maximized.
When 40 units will be sold at $ 7
Given Total cost= $ 170
Total revenue= Price*output sold =7*40=280
Profit=total revenue - total cost
Profit= 280-170= $ 110
Option A
If price=$9 and output=20
Given, total cost= 100
Total revenue= 9*20=180
Profit=180-100 =$ 80
Option C
If price=6 and output=50
Given, Total cost= 230
Profit= 300-230= $ 70
Option D
If price=10 and output= 10
Given, Total cost= 80
Profit= 100-80= $ 20
Option E
If price= 40 and output=7
Total revenue= 280
This quantity of output, price and cost are not mentioned in question. There is no information about cost, thus the profit cannot be determined.
Rahul Sunny answered 9 months agoRelated Solutions
Table 1 Price Quantity Demanded Quantity Supplied $10 10 60 $8 20 45 $6 30 30...
Table
1
Price
Quantity Demanded
Quantity Supplied
$10
10
60
$8
20
45
$6
30
30
$4
40
15
$2
50
0
1
Refer to Table 1. The equilibrium price and
quantity, respectively, are
a.
$2 and
50.
b.
$6 and
30.
c.
$6 and
60.
d.
$12 and
30.
2. .
Refer to Table 1. If the price were $8,
a
a.
shortage of 20
units would exist and price would tend to rise.
b.
surplus of 25 units...
Date Transaction Units In Unit Cost Total Units Sold Sales Price Total 7/1 Balance 100 4.10...
Date
Transaction
Units In
Unit Cost
Total
Units Sold
Sales Price
Total
7/1
Balance
100
4.10
410
7/6
Purchase
800
4.20
3,360
7/7
Sale
300
7.00
2,100
7/10
Sale
300
7.30
2,190
7/12
Purchase
400
4.50
1,800
7/15
Sale
200
7.40
1,480
7/18
Purchase
300
4.60
1,380
7/22
Sale
400
7.40
2,960
7/25
Purchase
500
4.58
2,290
7/30
Sale
200
7.50
1,500
Totals
2,100
9,240
1,400
10,230
Compute FIFO, LIFO, Average for the perpetual inventory system.
Be sure to do...
Date Transaction Units In Unit Cost Total Units Sold Sales Price Total 7/1 Balance 100 4.10...
Date
Transaction
Units In
Unit Cost
Total
Units Sold
Sales Price
Total
7/1
Balance
100
4.10
410
7/6
Purchase
800
4.20
3,360
7/7
Sale
300
7.00
2,100
7/10
Sale
300
7.30
2,190
7/12
Purchase
400
4.50
1,800
7/15
Sale
200
7.40
1,480
7/18
Purchase
300
4.60
1,380
7/22
Sale
400
7.40
2,960
7/25
Purchase
500
4.58
2,290
7/30
Sale
200
7.50
1,500
Totals
2,100
9,240
1,400
10,230
Compute FIFO, LIFO, Average for the periodic inventory system.
Be sure to do...
Price Quantity Supplied Quantity Demanded 8 50 20 7 40 25 6 30 30 5 20...
Price
Quantity Supplied
Quantity Demanded
8
50
20
7
40
25
6
30
30
5
20
35
4
10
40
Draw the supply curve and demand curve independently in a
separate graph.
Write the demand equation and the supply equation.
Combine both curves in one graph and show the equilibrium price
and quantity.
What is the quantity demanded when the price is $10?
Is there a shortage or surplus when the price equals
$8? What about $4?
If possible, calculate total profits given a price of $80, an average total cost of $30,...
If possible, calculate total profits given a price of $80, an
average total cost of $30, and an output of 5.
If price is above average total cost, is the firm making a
profit or loss and should it operate or shut down?
None of the above.
Profit and it should operate.
Loss and it should shut down to minimize losses.
Loss and it should operate to minimize losses.
Suppose that a firm is making a profit of $50 million...
PRODUCT 1 PRODUCT 2 Demand 80 80 Time/Unit 30 20 Sale Price 50 30 Variable Cost/Unit...
PRODUCT 1
PRODUCT 2
Demand
80
80
Time/Unit
30
20
Sale Price
50
30
Variable Cost/Unit
10
5
Contribution Margin/Unit
40
25
Contribution Margin Ratio
60%
40%
Contribution Margin/Unit of Time
0.33
0.50
Assume the maximum time allowed is only 3,900 per day.
Calculate and compare the profitability of the following
scenarios:
I. The product with the highest contribution margin
prioritized.
II. The product with the highest contribution margin per unit of
constrained resource is prioritized.
B
How do managers...
1A) Exhibit 8-1 Quantity and total revenue data for a firm Quantity Total Revenue 0 $ 0...
1A)
Exhibit 8-1 Quantity and total revenue data for a
firm
Quantity
Total Revenue
0
$ 0
1
62
2
124
3
186
Exhibit 8-1 indicates that this firm is operating in which type
of market structure?
a.
Nonhomogeneous.
b.
Perfect competition.
c.
Price-maker.
d.
Unprofitable.
1B)
Suppose a company increases production from a point where
marginal cost equals average total cost to a point where marginal
revenue and marginal cost are equal. Is it a good idea for the
company...
Price Market Quantity Demanded Social Quantity Demanded ($) (units per month) (units per month) 20 10...
Price
Market Quantity Demanded
Social Quantity Demanded
($)
(units per month)
(units per month)
20
10
20
18
20
30
16
30
40
14
40
50
12
50
60
10
60
70
b. Does this product have external
benefits or external costs?
External benefits
c. How large ($) is that
externality?
? per unit
Question 2 The total quantity of natural resources to be extracted is 100 units, the rate...
Question 2
The total quantity of natural resources to be extracted is 100
units, the rate of return is 5%pa the price now is $20 per unit,
the price in 1 year is $30 per unit and the marginal extraction
cost for both points in time is the same $10 per unit. How many
units should be extracted now? Choose at least one correct
answer
1. Approximately 66 units
2. Approximately 100 units
3. Approximately 0 units
4. Approximately 35...
When the price is $2, the quantity demanded is 10. When the price rises to $8, the quantity demanded falls to 2.
When the price is $2, the quantity demanded is 10. When the price
rises to $8, the quantity demanded falls to 2. What is the value of
the elasticity of demand? Is it elastic or inelastic?
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