A monopolist's demand curve: Multiple Choice

Q: At what output rate and price does the monopolist operate ?

A: Monopoly is the market of single seller with a perfect knowledge about the consumer demand. The…

Q: A monopolist can sell the same product to different consumers at different prices.

A: Monopoly generally occurs when there is only one supplier of a particular commodity in the market.…

Q: Show how to derive a monopolist's supply curve

A: A market situation where there is only one seller of a commodity having no close substitutes is…

Q: Suppose that the demand curve is P = 100 - Q. If the MC curve is MC = 3Q, then what price does the…

A: Monopolist profit is maximized where the Marginal Revenue is equal to Marginal Cost of productionP =

Q: monopolist, as opposed to a company in a perfectly competitive market:

A: Perfect competition market ;- where large numbers of sellers and buyers exist and exchange…

Q: How does a monopolist determine its profit-maximizing level of output?  How does it determine the…

A: A monopoly market structure is that kind of market where there is one single seller and thus the…

Q: A nondiscriminating pure monopolist's demand curve:

A: The monopolist would be the market structure which would have a single seller and many buyers in the…

Q: Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for…

A: A monopoly is a form of imperfect competition that has a single seller and a large number of buyers.…

Q: A monopolist restricts output and charges a higher price relative to what would occur if a market…

A: In monopolistic market, there is a single seller in the market and in perfectly competitive market,…

Q: When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price…

A: Monopoly market structure is the situation where there is only one firm exists in the market. There…

Q: How will a monopolist respond to a rise in fixed costs?

A: A monopoly is when a market is experiencing a situation where a single seller offers a specific…

Q: Critically evaluate and explain each statement: The monopolist has a pricing policy; the competitive…

A: Different forms of market structures differ in their level of competitiveness, ranging from highly…

Q: ) Unlike a perfect competitor, a monopolist faces the market demand curve.

A: Market: It refers to a place where buyers go and buy things for various uses. In a market there…

Q: The pricing of a monopolists is Select one: a. P>MC b. none c. P<MC d. P=MC

A: There are four major types of market structures in an economy are: perfect competition, monopoly,…

Q: The price elasticity of demand for a monopolist product is-0.7. Advise the firm on its pricing…

A: The measure that depicts the percentage change in quantity being demanded with respect to change in…

Q: Refer to the scenario above. The monopolist profit is maximized when the quantity sold is____ packs.…

A: Marginal revenue refers to the additional revenue that a seller receives from selling an extra unit…

Q: Why is marginal revenue below average revenue for a monopolist?

A: In monopoly markets there is a price effect and output effect..

Q: In general, a monopolist is likely to: earn lower profits than a perfectly competitive firm. earn…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: The price elasticity of demand for a monopolist’s product is –0.7. Advise the firm on its pricing…

A: The monopolist's inelastic demand is represented by the negative sign of the monopoly.

Q: Relative to a perfect competitive industry, a monopolist produse too little output and set too…

A: Perfect competition is the market structure with large number of buyers and sellers, selling…

Q: why is the demand curve facing a monopolist downward sloping while the demand curve facing a…

A: In perfect competitive market, there are number of buyers and sellers, selling similar products.…

Q: If a profit-maximizing monopolist is currently charging a price on the inelastic portion of its…

A: Monopoly is a single seller in the market selling unique good.

Q: A monopolist can sell its product at any price it wishes.   Is this true or false

A: Answer: False, Explanation: A monopolist will sell at the price which is corresponding to the…

Q: As long as _________ exist, a monopolist can earn positive profits in the long run A.Entry barriers…

A: In a monopoly there is a sole producer of a good in the market thus acting as a price maker.

Q: The monopolist is earning a profit equal to

A: Option 4 is correct answer $160

Q: Which one of the following is the best description of a monopolist? a.a firm that is the sole…

A: monopoly is a market type where there is only one producer of the good, there are no close…

Q: A monopolist has the following fixed and variable costs:

A: The Total Cost is the summation of the fixed cost and the variable cost of production. i.e. TC=FC+VC…

Q: A monopolist will always charge the highest price it can get. True or False True False

A: The monopolist cannot charge the very best price possible, it'll maximize profit where TR minus TC…

Q: A monopolist always earns a short run profit   is this true or false

A: We are going to discuss the profit maximization conditions for Monopoly to answer this question.

Q: Without regulations, monopolists will produce at an output level where marginal benefit is greater…

A: a monopolist firm always produces where marginal benefits is equals to marginal cost. that is MR=MC

Q: Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for…

A: A monopoly is an imperfect market structure in which a producer or a firm is the sole supplier of…

Q: Explain why a monopolist is constrained by demand?

A: Monopoly: It refers to the market where there is just a single seller who is selling goods and…

Q: How can a monopolist identify the profitmaximizing level of output if it knows its marginal revenue…

A: A monopoly refers to a single seller in the market. Thus, a monopolist faces no competition and has…

Q: monopolist can determine both the price and the output at the same time. Agree or Disagree

A: A monopoly is the sole producer of a good in the market thus having maximum market power hence will…

Q: How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue…

A: Monopoly refers to the market structure where there is only one firm in the industry. There is a…

Q: In the following situation, what should the monopolist do to maximize profit? Select the best…

A: A market structure characterized by a single seller, selling a unique product, and there exists no…