BUS Ch9 15. competition Vs. Monopoly Market Structure: Dead Weight Loss and the Misallocation of Resources. 48. If TC=1000 when Q=10, then if factors of production are doubled then TC = 2000 and Q=20. 47. Assume: a) Monopoly market structure. b) Firm's selection of "scale of plant results in "constant returns to scale" cost structure. c) This implies if you double inputs output doubles. d) Thus, double inputs doubles the cost of production. e) Thus, MC = AC. Q TC AC MC 10 1000 100 20 2000 100 100 40 4000 100 100 * YouTube 2:12/ 2:28 CC 67. In the video, when we assume constant returns to scale, the result is? Select one: O a. MC>AC O b. MC

BUS Ch9 15. competition Vs. Monopoly Market Structure: Dead Weight Loss and the Misallocation of Resources. 48. If TC=1000 when Q=10, then if factors of production are doubled then TC = 2000 and Q=20. 47. Assume: a) Monopoly market structure. b) Firm's selection of "scale of plant results in "constant returns to scale" cost structure. c) This implies if you double inputs output doubles. d) Thus, double inputs doubles the cost of production. e) Thus, MC = AC. Q TC AC MC 10 1000 100 20 2000 100 100 40 4000 100 100 * YouTube 2:12/ 2:28 CC 67. In the video, when we assume constant returns to scale, the result is? Select one: O a. MC>AC O b. MC

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.6P

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