#7 please Name three characteristics of a monopoly firm.2) Give an example of a business that is considered amonopoly.3) How does a monopoly firm (or any business) decidethe quantity that should be produced to maximize profit?In other words, what rule do they follow?4)1)Draw the monopoly cost curves where the firm ismaking a profit. Shade in the area of profit.5) If the monopoly firm is making a profit will otherfirms join the market (like they did in perfectcompetition) and eliminate the profits of the monopoly?Why or why not?6) Draw the monopoly curves where the firm is losingmoney. Shade in the area of loss.7) If a firm in any market structure is losing moneywhat will they do in the long-run?8) How is the price and quantity that a monopolyproduces different than the price and quantity that isproduced in perfect competition?9) Draw the cost curves of a monopoly where thebusiness would immediately (short-run) shut-down.10) Draw the cost curves for a monopoly and show thearea of consumer surplus, producer surplus anddeadweight ls.

Market Structure depicts how the firms are categorised and differentiated being based upon the type…

Answered: 7) If a firm in any market structure is…

Business

Economics

7) If a firm in any market structure is losing money what will they do in the long-run?

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 7PA

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Question

#7 please

Name three characteristics of a monopoly firm.
2) Give an example of a business that is considered a
monopoly.
3) How does a monopoly firm (or any business) decide
the quantity that should be produced to maximize profit?
In other words, what rule do they follow?
4)
1)
Draw the monopoly cost curves where the firm is
making a profit. Shade in the area of profit.
5) If the monopoly firm is making a profit will other
firms join the market (like they did in perfect
competition) and eliminate the profits of the monopoly?
Why or why not?
6) Draw the monopoly curves where the firm is losing
money. Shade in the area of loss.
7) If a firm in any market structure is losing money
what will they do in the long-run?
8) How is the price and quantity that a monopoly
produces different than the price and quantity that is
produced in perfect competition?
9) Draw the cost curves of a monopoly where the
business would immediately (short-run) shut-down.
10) Draw the cost curves for a monopoly and show the
area of consumer surplus, producer surplus and
deadweight ls.

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