Explain and illustrate how a monopolist can earn economic profits in the short run. Can the...

Explain and illustrate how a monopolist can earn economic profits in the short run. Can the monopolist maintain the profit into the long run? Explain. and Using law of diminishing returns, explain the shape of the marginal product curve( use diagram to support answer)

Expert Solution

Rahul Sunny answered 1 year ago

How do barriers to entry allow a monopolist to earn economic profits in the short run...

How do barriers to entry allow a monopolist to earn economic profits in the short run and the long run? Why does the elimination principle eliminate economic profits in the long run for a purely competitive firm but doesn't do so for a monopolistic firm?

1. In the short run, monopolistically competitive firms: a) will earn zero economic profits by acting...

1. In the short run, monopolistically competitive firms: a) will earn zero economic profits by acting like a monopolist. b) can earn positive economic profits by acting like a monopolist. c) will earn zero economic profits by acting like a perfectly competitive firm. d) can earn positive economic profits by acting like a perfectly competitive firm. 2. Product differentiation refers to: a) the process of informing the public of differences in products as a result of error. b) firms who...

Illustrate and explain how an economy that is at short-run equilibrium can still experience a recessionary...

Illustrate and explain how an economy that is at short-run equilibrium can still experience a recessionary gap based on the Keynesian Model. Make sure you label your diagram appropriately

When does a monopolist make a short-run economic profit? When does it make short-run economic loss,...

When does a monopolist make a short-run economic profit? When does it make short-run economic loss, but continue production? When does it shut down?

The monopolist determines the price and quantity combination that maximizes short-run profits by A. finding the...

The monopolist determines the price and quantity combination that maximizes short-run profits by A. finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price. B. finding the quantity at which average revenue and average total cost are furthest apart. C. finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits. D. determining the price by finding the highest price at...

If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist...

If government regulators guarantee a natural monopolist that it will earn normal profits, then the monopolist will a) achieve resource-allocative efficiency. b) charge a price above average total cost. c )produce a quantity of output at which marginal revenue equals price. d) none of the above

Suppose that a typical firm is receiving economic profits in the short run in a monopolistically...

Suppose that a typical firm is receiving economic profits in the short run in a monopolistically competitive industry. Carefully explain what will happen in the long run to: the number of firms the demand curve facing each firm price individual firm output and industry output economic profits or losses

A monopolist can earn above normal profit in the long run. true or false

Illustrate a typical monopolistically competitive firm in short- run equilibrium with economic profit. How will demand,...

Illustrate a typical monopolistically competitive firm in short- run equilibrium with economic profit. How will demand, average cost and profit change in the long run? Explain. Will the firm achieve minimum efficient scale? Explain. What is the source of the firm’s market power?

What factors prevent firms in monopolistic competition to earn economic profits in the long run? Discuss...

What factors prevent firms in monopolistic competition to earn economic profits in the long run? Discuss the adjustment process and factors such as customer or brand loyalty that might slow the adjustment process?

Question