Explain two ways policymakers respond to the inefficiencies of monopolists

Q: The table above shows revenue and cost information at four different Output (Q) levels for a…

A: Total revenue when output is 60 = 900 Total revenue when output is 80 = 800

Q: When there is only a single company, the monopolist will charge the price at $____ A)0 B)2 C)3.5…

A: Monopolist being single firm controls the price in the market.  Equilibrium under monopoly will be…

Q: Explain why a monopolist would never produce in the inelastic range of the demand curve

A: Elastic demand:  The elastic demand refers to that the small change in the price results large…

Q: a) A monopolist is faced with the following cost and revenue curves:

A: The following graph is given: The monopolistic firm maximizes its output at the point where its…

Q: Give two examples of price discrimination. In each case, explain why the monopolist chooses to…

A: Price discrimination is the situation when a firm has an opportunity/incentive to increase or…

Q: Explain whether regulating a monopolist by forcing it to charge a price equal to its marginal cost…

A: The monopolist generally produced to get maximum profits which he can get at the situation where…

Q: A monopoly is designing two take-it-or-leave-it contracts of the form (q., r,) for two consumer…

A: Utility function A : Ua = y - x2/3 + 41 x  Price of x = rA  Price of y = 1    (Income spent on other…

Q: omplete the first row of the following table. Short Run Quantity Price Pricing Mechanism…

A: A monopoly is a sole producer of a good thus acting as a price maker as they are having maximum…

Q: Use the following to answer questions (19) - (21): Suppose a monopolist faces the following market…

A: 19   Recall that in first degree price discrimination, the last good is sold at the price equal to…

Q: It has been argued that natural monopolists should be allowed to determine their profit-maximizing…

A: Simply in simple language we can say that the natural monopoly usually refers to the very large…

Q: Suppose Delta Airlines is a monopolist in the Atlanta market with a demand schedule: P = 400-.5*Q,…

A: A monopolist is a sole seller of a unique product.

Q: What is meant by the term “market power”?   Can a monopolist charge any price it wants because it is…

A: Monopoly market is defined as a market structure in which there is only a single seller in the…

Q: monopolist sells boat insurance policies linked to their registrations in two states, and resales…

A: DISCLAIMER  “Since you have asked multiple question, we will solve the first three question for you.…

Q: Consider the following graph pertaining to a monopolist. Does the monopolist choose the output rate…

A: At the point where marginal revenue equals marginal cost, a monopolist can maximise its earnings. At…

Q: If monopoly power is NOT protected by governments,

A: To find : What happens if monopoly power is not protected by government.

Q: With the aid of a diagram explain how a monopolist determines how much output to produce and what…

A: A monopolist is the single seller in the market who decides the price of the good he is selling or…

Q: Why Marginal Revenue is less than Price for a monopolist facing a downward sloping market demand…

A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Explain 4 ways policy makers can respond to the inefficiencies of the monopolist.

A: A monopoly is a situation that is the only supplier of a good or service, giving it a huge…

Q: The monopolist faces the demand curve P = 180-2Q/3. The monopolists marginal cost of production is…

A: Monopolist is the single seller in the monopoly market structure where they want to maximise the…

Q: Consider the following graph pertaining to a monopolist. Does the monopolist choose the output rate…

A: A monopoly is a market where there exists a large number of buyers but only one seller, the…

Q: Which of the following best explains why the monopolist’s marginal revenue is less than the sales…

A: Monopoly is a market structure where there is only one seller and many buyers. The seller has…

Q: We learned that in a competitive market equilibrium the Marginal Cost equals the Price, as Marginal…

A: Monopoly is a form of market structure in which a single firm sells a commodity for which there are…

Q: Monopolists, like firms in other market structure, strive to maximize profit. Microsoft when it…

A: Given: Marginal cost =$3.50 Marginal revenue =$2.75

Q: Suppose that a monopolist can segregate his buyers into two different groups to which he can charge…

A: Introduction: When demand is elastic, there is a negative relationship between price and total…

Q: The profit-maximizing quantity of a monopolist facing a downward-sloping demand curve must be…

A: The profit maximizing quantity of a monopolist facing a downward sloping curve produced at a elastic…

Q: A monopolist sells in two markets. What conditions must hold for the firm to be able to charge…

A: A monopolist is a seller who has control over the market supply. This means there is a single seller…

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: Consider a monopolist operating on a market with a downward sloping demand curve. The monopolist has…

A: Monopoly refers to a market condition in which there is one buyer and several sellers of a…

Q: Consider a monopolist operating on a market with a downward sloping demand curve. The monopolist has…

A: Price elasticity of supply assesses a commodity or service's responsiveness to a change in its…

Q: Does a monopolist take market price as given? Why or why not? No, because barriers to entry exist,…

A: A market is a place where producers of a commodity or service as well as the buyers of the…

Q: omplete the first row of the following table. Short Run Quantity Price Pricing Mechanism…

A: In a natural monopoly there are large fixed costs and small marginal costs.

Q: How does the demand curve for monopolist firm differ from the demand curves for firms in competitive…

A: The monopolist firm faces downward sloping demand curve which implies that prices that monopolist…

Q: Given the same costs, the monopolist produces less output and charges a higher price compared to the…

A: Answer to the question is as under:

Q: why a monopolist is constrained by demand?

A: Monopoly is the sole supplier of exclusive or patented good which has no close substitute in the…

Q: Does a monopolist firm always earn abnormal profit? Yes/No. Explainy your answer theoretically and…

A: Monopoly is a form of market organization in which a single firm sells a commodity for which there…

Q: An unregulated monopolist could sell the first unit of output for $40. However, for each additional…

A: Total revenue is the revenue that is generated by selling an additional unit of commodity. It is…

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: It has been proposed that natural monopolists should be allowed to determine their profit-maximizing…

A: A natural monopoly occurs when there are high fixed costs included in production. The…

Q: Which of the following is true for themonopolist?a. Marginal revenue is less than the…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: What is the usual shape of a marginal revenue curve for a monopolist? Why? How can a monopolist…

A: A market is a place where the buyers and the sellers interact with each other and the exchange of…