Explain the monopolist Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions Describe the short...

Explain the monopolist
Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions
Describe the short and long run market conditions
Explain what a “natural monopoly” is
Describe limits on monopoly power

Expert Solution

Rahul Sunny answered 1 year ago

Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions Describe the short and long run...

Describe and/or analyze graphically the firm’s profit-maximizing,Break-even, and shut-down conditions Describe the short and long run market conditions Explain what a “natural monopoly” is Describe limits on monopoly power

A profit-maximizing firm in monopolistic competition should shut down in the short run if: a. price...

A profit-maximizing firm in monopolistic competition should shut down in the short run if: a. price is more than average total cost. b. price is less than average variable cost. c. marginal revenue is equal to marginal cost. d. marginal revenue is less than price. e. price is less than average fixed cost. The term “strategy” in terms of game theory refers to: a. the tendency for collusive firms to generate normal profits. b. each firm’s decision to charge a...

Q 1) explain the short-run break-even price as well as shut-down price for a competitive firm....

Q 1) explain the short-run break-even price as well as shut-down price for a competitive firm. (2 points) Q 2) Why is the level of output where marginal revenue equals marginal cost called as the profit-maximizing output under perfect competition? Show your proof. (2 points) Q 3) Describe the shape of short run supply curve in perfect competition. (2 points) Q 4) Do you agree that companies under perfect competition as well as monopoly are making profits in the long...

A profit-maximizing firm should shut down in the short run if: Answer choices: price is greater...

A profit-maximizing firm should shut down in the short run if: Answer choices: price is greater than marginal cost. total revenue is less than total variable cost. the firm is earning less than a normal rate of return. the firm is not able to cover its overhead expenses. marginal cost is higher than average cost.

A monopolist will shut down in the short run if: a. total revenue is less than...

A monopolist will shut down in the short run if: a. total revenue is less than total variable cost. b. price is less than marginal revenue. c. marginal revenue is less than price. d. total revenue is less than total fixed cost. e. marginal revenue is less than marginal cost. A movement from an abnormally high rate of unemployment toward a more typical level of unemployment would: a. move an economy from a point on the production possibilities curve to...

What is the difference between the firm’s shut down point in the short run and in...

What is the difference between the firm’s shut down point in the short run and in the long run? Why are firms willing to accept losses in the short run but not in the long run?

1. State the profit-maximizing conditions (rules) under perfect competition in the short-run. 2. State the profit-maximizing...

1. State the profit-maximizing conditions (rules) under perfect competition in the short-run. 2. State the profit-maximizing conditions (rules) under perfect competition in the long-run, explain why perfect competition suggests market efficiency? What about market fairness, equality, social justice, and all other social goals?

Distinguish between shutdown and exit. When does a profit-maximizing competitive firm decide to shut down? When...

Distinguish between shutdown and exit. When does a profit-maximizing competitive firm decide to shut down? When does it decide to exit a market? Explain your answer.

In the short run, under what conditions should the firm shut down? average total cost at...

In the short run, under what conditions should the firm shut down? average total cost at the minimum point price greater than average variable cost price less than average variable cost marginal revenue greater than marginal cost marginal revenue greater than average total cost

In the short run, under what conditions should the firm shut down? a. average total cost...

In the short run, under what conditions should the firm shut down? a. average total cost at the minimum point b. price greater than average variable cost c. price less than average variable cost d. marginal revenue greater than marginal cost

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