Question
In: Economics
Do you think the monopolist acts as profit maximizing ( price , cost ) ? illustrate...
Do you think the monopolist acts as profit maximizing ( price , cost ) ? illustrate your answer with graph.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A profit-maximizing monopolist charges a price of $36. The intersection of the marginal revenue and marginal...
A profit-maximizing monopolist charges a price of $36. The
intersection of the marginal revenue and marginal cost curves
occurs where output is 20,000 units and marginal cost is $24.
Average total cost for 20,000 units of output is $32. As a result,
the monopolist’s profit is more than $80,000.
true or false
The continuous downward slope of the average total cost curve
suggests that the profit-maximizing natural monopolist is able to
exploit economies of scale to keep competitors from successfully...
Suppose a profit-maximizing monopolist is producing 900 units of output and is charging a price of...
Suppose a profit-maximizing monopolist is producing 900 units
of output and is charging a price of $45.00 per unit. If the
elasticity of demand for the product is negative 1.50, find the
marginal cost of the last unit produced. The marginal cost of the
last unit produce is (Enter your response rounded to two
decimal places.) What is the firm's Lerner Index? The firm's
Lerner Index is (Enter your response rounded to two decimal
places.) Suppose that the average...
Assume a profit maximizing monopolist faces the following demand, marginal revenue and cost functions:
Assume a profit maximizing monopolist faces the following
demand, marginal revenue and cost functions: Demand: P = 400 - 50Q
Total Cost: TC = 100Q Marginal cost MC = 100 Marginal Revenue MR =
400 – 100Qa) Find the profit maximizing output level for the
monopolist.b) At this level of output what price will the monopolist
charge?c) What is the total profit for the monopolist?d) If the monopolist were a revenue maximizer instead of a
profit maximizer, what would be...
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of
output) on a graph for a monopoly with demand, marginal revenue,
marginal cost, and average total cost curves.
Find the point where MR = MC and go straight over to the price
axis.
Find the point where demand hits marginal cost and go straight
over to the price axis.
Find the point where MR = MC, go straight up until you hit the
demand curve, and then go straight...
How do you find the profit maximizing PRICE (not level of output) on a graph for...
How do you find the profit maximizing PRICE (not level of
output) on a graph for a monopoly with demand, marginal revenue,
marginal cost, and average total cost curves.
Find the point where MR = MC and go straight over to the price
axis.
Find the point where demand hits marginal cost and go straight
over to the price axis.
Find the point where MR = MC, go straight up until you hit the
demand curve, and then go straight...
Carefully draw the appropriate revenue and cost curves for a profit-maximizing monopolist, which is indifferent between...
Carefully draw the appropriate revenue and cost curves for a
profit-maximizing monopolist, which is indifferent between
producing and not producing in the short-run. Show the
deadweight loss caused by the monopoly. In the long run,
will the firm produce more or less? (8 points)
The profit-maximizing monopolist Alga has the cost function C (y) = 16y and meets an (inverse)...
The profit-maximizing monopolist Alga has the cost function C
(y) = 16y and meets an (inverse) demand function: p (y) = 80 - y
What is the maximum profit? Draw a picture and enter the welfare
loss in the figure. Explain the concept of welfare loss. Assume
finally that the introduction of a tax of SEK 4 per unit, which
then becomes Algas profit-maximizing price?
The following table depicts the price and cost structure of a profit-maximizing firm:
The following table depicts the price and cost structure of a
profit-maximizing firm:QuantityPrice per UnitTotal Cost0251012515225303255542590525135a.) What is the firm’s fixed cost?b.) What is the variable cost of producing two
units of output?c.) What is the marginal cost of the second unit produced?d.) What is the firm’s total revenue from selling two units of
output?e.) What is the marginal revenue from the second unit sold?f.) What is the firm’s profit-maximizing level of output?
How do a competitive firm, monopolist and monopolistically competitive firm determine its profit-maximizing level of output...
How do a competitive firm, monopolist and monopolistically
competitive firm determine its profit-maximizing level of output
and price? Explain your answer.
Do you think the focus of a Cost Volume Profit (CVP) analysis is the unit cost...
Do you think the focus of a Cost Volume Profit (CVP) analysis is
the unit cost of an item, the overall profitability of a new
product, the profitability of a department manufacturing a new
product, or some combination of all of these items?
Explain your reasoning.
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