Question
In: Economics
Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue...
Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows:
P = 360 - 4Q MC = 4Q
What is the profit-maximizing level of price?
| A. |
$120 |
|
| B. |
$360 |
|
| C. |
$30 |
|
| D. |
$240 |
Humana Hospital is one of two hospitals in a small town, its markdown on wage in the local labor market most likely to decrease if
| A. |
the other hospital is closed. |
|
| B. |
it merges with the other hospital. |
|
| C. |
more and more people get doctor licenses and open clinics. |
|
| D. |
more and more qualified doctors are willing to move into the town. |
A multiplant monopolist can produce her output in either of two plants. She discovers that when marginal revenue is $ 50, the marginal cost in plant 1 is $20 while the marginal cost in plant 2 is $25. To maximize profits the firm will
| A. |
produce less in both plants. |
|
| B. |
produce less output in plant 1 and more in plant 2. |
|
| C. |
produce more in both plants. |
|
| D. |
produce more output in plant 1 and less in the plant 2. |
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
3. James is a producer in a monopoly industry. His demand curve, total revenue, curve, marginal...
3. James is a producer in a monopoly industry. His demand curve,
total revenue, curve, marginal revenue curve and total cost curve
are given as follows:
Q=100-4P
TR=25Q-0.25Q2
MR=25-0.5Q
TC=6Q
MC=6
a.How much output will James produce?
b. What price will James charge per unit of output?
c. How much profit will James make?
d. If this was a competitive firm. Calculate the profit
maximizing price and quantity and compare with price and quantity
under monopoly.
e. Calculate the amount...
3. James is a producer in a monopoly industry. His demand curve, total revenue, curve, marginal...
3. James is a producer in a monopoly industry. His demand curve,
total revenue, curve, marginal revenue curve and total cost curve
are given as follows:
Q=100-4P
TR=25Q-0.25Q2
MR=25-0.5Q
TC=6Q
MC=6
a. (4 points) How much output will James produce?
b. (4 points) What price will James charge per unit of
output?
c. (4 points) How much profit will James make?
d. (8 points) If this was a competitive firm. Calculate the
profit maximizing price and quantity and compare with...
The Marginal Revenue curve facing a monopoly firm is a) identical to its demand and average...
The Marginal Revenue curve facing a monopoly firm is
a) identical to its demand and average revenue curve.
b) perfectly elastic.
c) below its demand and average revenue curve.
d) the same as it is for a perfectly competitive firm.
For a firm in a perfectly competitive market
a) The firm must decrease price if it wants to sell an
additional unit of the product
b) The demand curve is downward sloping
c) Price = Average Revenue = Marginal Revenue...
The marginal revenue curve of a monopoly crosses its marginal cost curve at $31 per unit,...
The marginal revenue curve of a monopoly crosses its marginal
cost curve at $31 per unit, and an output of 2 million units.
What is the profit-maximizing (loss-minimizing) output? ()
million units.
The price that consumers are willing to pay for this output is
$39 per unit. If it produces this output, the firm's average
total cost is $41 per unit, and its average fixed cost is $5 per
unit.
What are the firm's economic profits (or economic losses)?
$()
Draw a graph for a monopoly with demand, marginal revenue, and marginal cost curves.
Assignment: Draw a graph for a monopoly with
demand, marginal revenue, and marginal cost curves. Identify the
profit-maximizing output level (Qm) and price (Pm). (Photos of your
work are not accepted) Suppose the monopolist sells Qm units of
output at the regular price and then puts the product on sale at a
lower price, Ps. Show the new price and quantity. What happens to
the firm’s profits? Does price discrimination lead to a more
efficient or less efficient outcome? Why...
Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the...
Draw the graph for a monopoly with demand, marginal revenue, and
marginal cost curves. Identify the profit-maximizing output level
(Qm) and price (Pm). Suppose the monopolist sells Qm units of
output at the regular price and then puts the product on sale at a
lower price, Ps. Show the new price and quantity. Identify the
consumer surplus of the additional sales. What happens to the
firm’s profits and Does price discrimination lead to a more
efficient or less efficient outcome?...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its
product:
Q = 200 - 2P MR = 100 - Q TC = 5Q MC = 5
a) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the price...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 ; MR = 100-Q ; TC = 5Q ; MC = 5
a) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing...
A monopolist faces the following demand curve, marginal revenue, total cost curve and marginal cost curve...
A monopolist faces the following demand curve, marginal revenue,
total cost curve and marginal cost curve for its product: Q = 200 -
2P ; MR = 100 - Q ; TC = 5Q ; MC = 5
a) What level of output maximizes total revenue?. b) What is the
profit maximizing level of output?. c) What is the profit
maximizing price?. d) How much profit does the monopolist earn? e)
Suppose that a tax of $5 for each unit...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 - 2P MR = 100 - Q TC = 5Q MC = 5 a. What is the profit
maximizing level of output? (10 pts.) b. What is the profit
maximizing price? (8 pts.) c. How much profit does the monopolist
earn? (10 pts.)Immersive Reader (28 Points)
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