part 7 8 9 A Quick Review of Perfect Competition and MonopolyFigure 39.1Graphs of Monopoly and Perfect CompetitionMonopolyPerfect CompetitionRMCATCMCATCAVCKD= MR(G.M.H.MRE LMQUANTITYABDQUANTITYThese questions are based on Figure 39.1. Underline the correct answer. Assume that the monopolycan set only one price. Both the monopoly and the perfect competitor seek to maximize profits.1. A monopoly firm will maximize profits at what price?(B) OB(A) OA(C) OC(D) OR2. Economic profits for the monopoly firm are represented by the area of which rectangle?(C) AJHB(A) OCGE(B) OAJE(D) BAJN3. Total costs for the monopoly firm are represented by the area of which rectangle?(A) BKLO(B) CGEO(C) AJEO(D) BHEO4. The total revenue for the monopoly firm is represented by the area of which rectangle?(C) AJHB(A) OCGE(B) OAJE(D) BAJH5. The perfect competitor will maximize profits at what output level?(в) ов(A) OA(C) 0G(D) ODCOSTS/REVENUE (DOLLARS)-------COSTS/REVENUE (DOLLARS) 6. The perfect competitor will shut down below which price-output relationship?(A) K(C) L(B) M(D) R7. At price OG, the area of which rectangle represents total revenue for the profit-maximizing per-fect competitor?(A) OGKC(B) OFJC(C) FGKJ(D) EFJH8. At output OC, total variable cost is represented by the area of which rectangle?(A) OGKC(B) FGKJ(C) OEHC(D) OFIC9. At price OG, profits for the perfect competitor are represented by the area of which rectangle?(C) FGKJ(A) OGKC(B) OFJC(D) OEHC10. At what price-output relationship will a perfect competitor operate in the long run?(A) K(B) L(C) M(D) R11, For the monopolist, what is the area of consumer surplus?(B) AJGC(A) ABHJ(C) ARJ(D) ARJE

Firms in perfect competition are price-takers as they sell their output at the prevailing market…

Answered: 7. At price OG, the area of which…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Similar questions

READ THE ARTICLE BELOW AND ANSWER THE QUESTIONS THAT FOLLOW:Ernst & Young to Pay $100 Million Penalty for Employees Cheating on CPA EthicsExams and Misleading InvestigationLargest Penalty Ever Imposed by SEC Against an Audit FirmWashington D.C., June 28, 2022The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheatingby its audit professionals on exams required to obtain and maintain Certified Public Accountant(CPA) licenses, and for withholding evidence of this misconduct from the SEC’s EnforcementDivision during the Division’s investigation of the matter. EY admits the facts underlying theSEC’s charges and agrees to pay a $100 million penalty and undertake extensive remedialmeasures to fix the firm’s ethical issues.“This action involves breaches of trust by gatekeepers within the gatekeeper entrusted to auditmany of our Nation’s public companies. It’s simply outrageous that the very professionalsresponsible for catching cheating by clients cheated…
6) If the market prices of each of the 30 stocks in the Dow Jones Industrial Average (DJIA) all change by the same percentage amount during a given day, which stock will have the greatest impact on the DJIA? A) The stock trading at the highest dollar price per share B) The stock having the greatest amount of debt in its capital structure C) The stock having the greatest amount of equity in its capital structure D) The stock having the lowest volatility Please provide accurate answer with justification.
1. What is the main purpose of Strategic Risk Management? a. Assess risks to identify which to avoid b.Transfer all risk exposures of the company c.Develop the company’s risk profile d. Create and protect value for its stakeholders 2..Which of the following cannot be derived from analyzing Porter’s Five Forces? aPotential threats to a company’s value proposition b.Industry’s attractiveness or level of competition c.Trends in the market or industry d. None of the foregoing 3..What is likely to happen if many new businesses enter a market? a.Competitive rivalry will intensify b.Industry profits will increase c.Industry capacity will fall d.Barriers to entry will rise
1.Discuss the attractiveness of Treynor Black methodology to an investor in developed market large and medium cap equities? 2. The stock market falls by 33 percent in one day: is this necessarily inconsistent with the market hypothesis? Explain your reasoning 3. New information hits a company share such that the share price rises from 100 pence to 120 pence and then the share price rises gradually over the following 6 months to 150 pence despite any further news. Is this evidence of market efficiency? Explain your reasoning.
A few years ago, T-mobile and Sprint, which were at that time the third and fourth largest cell phone service providers in the United States merged to form the compnay that is now called T-Mobile. Please make an argument that this merger, even though it reduced the number of large cell phone service providers from 4 to 3, actually led to an increase in competition in the industry. You must give an explanation.
Theo Chocolate Seattle’s Theo Chocolate specialises in the divine. The coca that the chocolate maker harvests to produce its delicious candy bars comes from a tropical evergreen known as Theobroma cacao – translated literally, “food of the gods”. The heavenly flavour that resides in the plants cacao pods helps sustain the worldwide confectionery industry, and Theo is one of the newest companies to master the art of cacao cultivation. Founded in 2006 by Joseph Whinney, Theo Chocolate prides itself on being the first organic and Fairtrade Certified chocolate maker in the United States. In addition to producing world-class chocolate, Theo integrates ethical standards throughout its entire business, all the way from the cocoa farm to the candy rack. When Theo first started its production, the company offered an exotic line of dark chocolate and milk chocolate bars and truffles. These early treats had unusual names such as Coconut Curry, the 3400 Phinney Bar, and Bread &…
Theo Chocolate Seattle’s Theo Chocolate specialises in the divine. The coca that the chocolate maker harvests to produce its delicious candy bars comes from a tropical evergreen known as Theobroma cacao – translated literally, “food of the gods”. The heavenly flavour that resides in the plants cacao pods helps sustain the worldwide confectionery industry, and Theo is one of the newest companies to master the art of cacao cultivation. Founded in 2006 by Joseph Whinney, Theo Chocolate prides itself on being the first organic and Fairtrade Certified chocolate maker in the United States. In addition to producing world-class chocolate, Theo integrates ethical standards throughout its entire business, all the way from the cocoa farm to the candy rack. When Theo first started its production, the company offered an exotic line of dark chocolate and milk chocolate bars and truffles. These early treats had unusual names such as Coconut Curry, the 3400 Phinney Bar, and Bread &…
On March 16, 2022, the Federal Reserve released a statement that included, " the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent". How can the Federal Reserve attempt to reach this target? Select all that apply A. The Fed makes an open market purchase of bonds. B. The Federal Reserve instructs Congress to pass legislation setting the interest rate banks can charge one another for short term loans. C. The Federal Reserve opens more branches. The increased competition raises the interest rate. D. The Federal Reserve increases the money supply. E. The Fed lowers reserve requirements F. The Federal Reserve sells bonds in the open market. G. The Fed lowers the discount rate.
Perform a quick PESTEL analysis of the companies listed below. What is the largest risk for each of theChapter 8 Strategic Analysis: Understanding a Firm’s Competitive Environment 275companies? Assume that you had $100,000 to invest in one of more of these companies. Explain how youwould allocate your investment and why you chose this particular allocation.a. Uberb. Teslac. General Motors.
Choose the correct answer; Amazon, the retail giant headquartered in the U.S, has faced severe criticisms from various parts of the society including the politicians in the U.S for its cut throat capitalist policies to aggregate the wealth of the company. The executives of the company are always focused on the investor’s benefits and their preferences. Which of the following classification of CSR is evident from the above statements? a.Responsibility towards the customers b.Responsibility towards the shareholders c.Responsibility towards the Employees d.Responsibility towards the environment
Is it possible for 3M to maintain steady growth and profitability and raise that growth to much higher levels?
The Managing Director of B.S. Ltd. A consumer goods manufacturing firm, called an internal meeting of senior managers to discuss issues involved in acquiring SV Ltd. for about Rs. 350 crores. He started the meeting with following observations: ‘After acquiring SV, we will become the second largest consumer goods company in India with Sales of over Rs. 4500 crores. We will have more money for marketing initiatives, product launches and aggressive price-cuts. The key reason behind buying SV is to create shareholder value over and above that of the sum of the two companies. Recent years have been tough for both the companies with strong competition. The merged company hopes to gain a greater market share and achieve greater efficiency.’ Different issues discussed between the managers. Pertinent pointed out critical aspects: Like VP Productions emphasized that production facilities of both the companies need to be synergized. There is also need to close down production facilities of two…

SEE MORE QUESTIONS

Recommended textbooks for you

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Understanding Business

Management

ISBN:

9781259929434

Author:

William Nickels

Publisher:

McGraw-Hill Education

Management (14th Edition)

Management

ISBN:

9780134527604

Author:

Stephen P. Robbins, Mary A. Coulter

Publisher:

PEARSON

Spreadsheet Modeling & Decision Analysis: A Pract…

Management

ISBN:

9781305947412

Author:

Cliff Ragsdale

Publisher:

Cengage Learning

Management Information Systems: Managing The Digi…

Management

ISBN:

9780135191798

Author:

Kenneth C. Laudon, Jane P. Laudon

Publisher:

PEARSON

Business Essentials (12th Edition) (What's New in…

Management

ISBN:

9780134728391

Author:

Ronald J. Ebert, Ricky W. Griffin

Publisher:

PEARSON

Fundamentals of Management (10th Edition)

Management

ISBN:

9780134237473

Author:

Stephen P. Robbins, Mary A. Coulter, David A. De Cenzo

Publisher:

PEARSON

SEE MORE TEXTBOOKS