1.should these monopolists increase or decrease output, increase or decrease price, and on what information is...

1.should these monopolists increase or decrease output, increase or decrease price, and on what information is your answer based? Can the monopolists maximize profits minimize a loss ,or should they shutdown? Give a reasons for your answers based on the numbers in the rows

Price	MR	Q	TR	TC	P/L	TVC	ATC	AVC	MC
10	5	10	100	50	+50	30	5	3	7
50	<50	50	2500	2600	-100	1600	52	32	50
10	5	1000	10000	8000	+2000	5000	8	5(min)	5
90	70	25	2250	1500	+750	750	60	50	50

Expert Solution

The firm maximizes its profits at Q = 1000 with MR=MC=5. The price at this point is 10 which is above the min of AVC(5). This means that firm should continue operations and not shut down at this level. Please see explanation for each row in the remarks column.

Rahul Sunny answered 2 years ago

Under what conditions should a manager increase, decrease, hold constant, or increase a firms output or...

Under what conditions should a manager increase, decrease, hold constant, or increase a firms output or price. How does current interest rate factor in this decision?

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] ...

An increase in demand can be expected to ["increase", "decrease"] equilibrium price and ["decrease", "increase"] equilibrium quantity. An increase in supply can be expected to ["decrease", "increase"] equilibrium price and ["decrease", "increase"] equilibrium quantity. If there is an increase in demand and an increase in supply then we can expect equilibrium price to ["increase", "stay the same", "it is not possible to say", "decrease"] and equilibrium quantity to ["decrease", "stay the same", "increase", "it is not...

Show the effect on price (increase, decrease, no effect): Show the effect on price (increase, decrease,...

Show the effect on price (increase, decrease, no effect): Show the effect on price (increase, decrease, no effect) for each of the following situations under three form of market efficiency Situations Situations Weak Semi-Strong Strong The WSJ publishes that Landmark Inc. declared a dividend of $1 per share Landmark Inc. board members decide in a closed door meeting to open a new factory in Taiwan Your broker in NYSE tells you that Landmark Inc. CEO is going to declare retirement

1)Assume there is a decrease in the price of a complement, an increase in income, a decrease in the number of firms, an increase in the cost of input

1)Assume there is a decrease in the price of a complement, an increase in income, a decrease in the number of firms, an increase in the cost of input, firms expect a higher price, and consumers expect a lower price. Based on all of this information, which of the following is correct? A)The equilibrium price will increase, and the equilibrium quantity will increase. b)The equilibrium price will decrease, and the equilibrium quantity will decrease. c) More information is needed to know...

1) A decrease in an import tariff will result in ___ A) an increase in price,...

1) A decrease in an import tariff will result in ___ A) an increase in price, but a decrease in quantity purchased. B) a decrease in price and a decrease in quantity purchased. C) a decrease in imports, but an increase in domestic production. D) an increase in imports, but a decrease in domestic production 2) The largest component of GDP is A) tax revenue B)the nation's capital stock C) CAPX spending D) consumer spending E) government spending 3) When...

Assume that the demand for Starbucks coffee is elastic. Should Starbucks increase or decrease the price...

Assume that the demand for Starbucks coffee is elastic. Should Starbucks increase or decrease the price of their coffee in order to bring in more total revenue. Please explain your answer

1. An escalator clause provides for an increase, but not a decrease, in price if costs...

1. An escalator clause provides for an increase, but not a decrease, in price if costs change. True or False? 2. This bond guarantees work will be done according to specifications, in the time specified, and if another supplier does rework or completes the order, purchasing is indemnified for these extra costs. A. bid bind. B. lien bond. C.Surety bond. D. Performance Bond, E. Payment Bond, 3. A prime function of an organized commodity exchange is to furnish an established...

If the Phillips curve is usually correct, then an increase in output and a corresponding decrease...

If the Phillips curve is usually correct, then an increase in output and a corresponding decrease in unemployment would be unusual. Select one: True False The correlation between unemployment and inflation can be explained by upward pressure on wages and prices when unemployment is low. Select one: True False According to the natural rate hypothesis (Friedman and Phelps), in the long run, monetary growth did not influence those factors that determine the economy’s unemployment rate. Select one: True False A...

If a stock's dividend increases, what will happen to the stock's price? Will increase, Decrease, or...

If a stock's dividend increases, what will happen to the stock's price? Will increase, Decrease, or will not change.

1) In the short run, a price decrease combined with an increase in the unemployment rate...

1) In the short run, a price decrease combined with an increase in the unemployment rate is most likely to be the result of A) an adverse supply shock B) a favorable supply shock C) a decrease in money supply D) an expansionary fiscal or monetary policy 2) Potential GDP is the value of GDP that can be calculated if we assume that A) the unemployment rate is zero B) the inflation rate is zero C) GDP has been adjusted...

Question