1. A multi-plant monopolist will maximize profits where a. the marginal revenue in each plant is...

1. A multi-plant monopolist will maximize profits where

a. the marginal revenue in each plant is equal to the marginal cost in this plant

b. the marginal revenue of monopoly is equal to the marginal cost of each plant

c. average cost is at its minimum in both plants

d. none of the above

Expert Solution

If there are multiple plants for a monopolist, then the maximum profit occurs at a condition where the marginal cost of each identical plant is indeed same and the marginal revenue of the total production is equal to the marginal cost of each plant on the whole. In this regard

(b) is the anssee for this question on the whole.

Rahul Sunny answered 2 years ago

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing...

19. To maximize profits, a single-price monopolist will produce where Marginal costs = Marginal revenue: establishing a price that is greater than their marginal cost. True False 20. As a consequence of the perfectly competitive firm producing the quantity of output at which: price equals marginal revenue and marginal cost, it will achieve "allocative efficiency" in the deployment of societies scarce resources. True False 21. In the "long-run," the perfect competitive achieves technical efficiency and the firm will produce at:...

1..A pure monopolist will maximize profits by producing at that output where price and marginal cost...

1..A pure monopolist will maximize profits by producing at that output where price and marginal cost are equal. A)True B)False 2..In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to: A)average total cost. B)marginal revenue. C)average variable cost. D)average cost. 3..Which is not true for a monopolistically competitive industry? A).Firms tend to operate with excess capacity. B). Each firm faces a downward-sloping demand curve. C). These firms earn zero...

Question 37 A monopolist maximizes profits by a. producing an output level where marginal revenue equals...

Question 37 A monopolist maximizes profits by a. producing an output level where marginal revenue equals marginal cost. b. charging a price equal to marginal revenue and marginal cost. c. charging a price where marginal cost equals average total cost. d. Both a and b are correct. Question 38 A monopoly is an inefficient way to produce a product because a. it faces a downward-sloping demand curve. b. it can earn both short-run and long-run profits. c. the cost to...

Multi-plant monopolist: A monopolist has access to two production processes with the following marginal cost curves:...

Multi-plant monopolist: A monopolist has access to two production processes with the following marginal cost curves: MC1 = 0:8x and MC2 = 64+ 0:2y, where output in production process 1 is x, output in production process 2 is y and hence total output produced is Q = x + y: (a) During peak season, the monopolist faces the following demand curve: P = 320 1:2Q: How much should he produce at each facility to maximize profits? What would be his...

4. Multi-plant monopolist: A monopolist has access to two production processes with the following marginal cost...

4. Multi-plant monopolist: A monopolist has access to two production processes with the following marginal cost curves: MC1 = 0:8x and MC2 = 64+ 0:2y, where output in production process 1 is x, output in production process 2 is y and hence total output produced is Q = x + y: (a) During peak season, the monopolist faces the following demand curve: P = 320 1:2Q: How much should he produce at each facility to maximize profits? What would be...

marginal revenue equals marginal cost to maximize total revenue

1. Producing where Marginal Revenue equals marginal cost does not maximize profit or minimizes losses. Agree...

1. Producing where Marginal Revenue equals marginal cost does not maximize profit or minimizes losses. Agree or Disagree? Why? Explain your answer and give examples. 2. Basing the determination of the short-term profit maximizing output for individual firms based on the four basic market structures by using arithmetic and graphical analysis is not effective method. Agree or Disagree? Why? Explain your answer and give examples. 3. There is no contrast of demand curve differences between the four basic market structures....

A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist...

A competitive firm maximizes profit at the point where marginal revenue equals marginal cost; a monopolist maximizes profit at the point where marginal revenue exceeds marginal cost. true or false Price discrimination is a rational strategy for a profit-maximizing monopolist when there is no opportunity for customers to engage in arbitrage across market segmentations true or false When regulating a monopoly with average cost pricing, the monopoly is able to enjoy a zero economic profit and the deadweight loss of...

explain the process a monopolist goes through to maximize profits.

Both the perfectly competitive firm and the monopolist produce at the output where marginal revenue equal...

Both the perfectly competitive firm and the monopolist produce at the output where marginal revenue equal marginal cost, but only the perfect competitive firm achieves allocative efficiency. Explain why?

Question