Q26 and Q 27 $50$45$40$35MC,$30$25ATCDemand = P$20$15LRATC = LRMC$10MR$5$020406080100120Output (Q)The diagram above shows the Demand, MR, and cost curves for a monopolist in both the short-run and long-run.According to the information on the graph, the monopolist will maximize profit in the SHORT-run by choosing Output(Q) leveland in the LONG-run by choosing Output (Q) levelSelect one:O a. 40; 80O b. 25; 80O c. 25; 40O d. 40; 25 $55$50$45$40$35$30$25$20Demand P$15$10$5MR$04080120160200240Output (Q)The diagram above shows the Demand and Marginal Revenue curves for a monopolist. Which of the following generalrelationships is NOT demonstrated in the diagram?Select one:O a. Marginal Revenue equals Price at each Output.O b. Price is greater than Marginal Revenue.Price equals Demand.O d. The Marginal Revenue curve is steeper than the Demand curve.Next page$$

1. The monopolist will maximize his profits in the short run by producing where MC=MR. This happens…

$50 $45 $40 $35 MC, $30 $25 ATC Demand = P $20 $15 LRATC = LRMC $10 MR $5 $0 20 40 60 80 100 120 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in both the short-run and long-run. According to the information on the graph, the monopolist will maximize profit in the SHORT-run by choosing Output (Q) level and in the LONG-run by choosing Output (Q) level Select one: O a. 40; 80 O b. 25; 80 O c. 25; 40 O d. 40; 25

$50 $45 $40 $35 MC, $30 $25 ATC Demand = P $20 $15 LRATC = LRMC $10 MR $5 $0 20 40 60 80 100 120 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in both the short-run and long-run. According to the information on the graph, the monopolist will maximize profit in the SHORT-run by choosing Output (Q) level and in the LONG-run by choosing Output (Q) level Select one: O a. 40; 80 O b. 25; 80 O c. 25; 40 O d. 40; 25

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 7PA

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