If we allow the natural monopolist to charge a price that generates normal economic profit will that generate allocative efficiency? Explain!

Q: The formula that represents profit for a monopolist is O (P – ATC) × Q. - O (P – MC) × Q. - - O (MR…

A: In monopolistic market, there is only one firm selling unique good. This makes monopoly a price…

Q: Write out the monopolist’s profit function as a function of ?1 ??? ?2.

A: Formula for finding the monopolist’s profit function as a function of q1 and q2: π = (p1q1 + p2q2) -…

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: All imperfect competitors; pure monopoly, oligopoly, and monopolistic competition face downward…

A: The two broad categories of market forms namely perfect and imperfect competition differ largely on…

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: 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: suppose a monopolist sells to two groups that have constant elasticity demand curve with elasticity…

A: A monopoly firm is the sole supplier of the good in the market and therefore a monopoly firm always…

Q: How does a monopolist decide its production amount and pricing strategy? Explain

A: The markets in an economy are of different structures, ranging from being highly competitive to no…

Q: f a natural monopolist practices perfect price discrimination, how does it affect the…

A: Price discrimination refers to the practice of charging different prices from different buyers. This…

Q: can you please draw the profits of a monopolist in the case where average cost cuts average revenue?

A: Monopoly refers to the situation where there is only one firm exist in the market. Natural monopoly…

Q: Suppose that a monopolist can engage in perfect (first degree) price discrimination. The monopolist…

A: Here we calculate the price  discriminating monopolist charge by using the given information , so…

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: If the monopolist's demand is represented by a linear downward sloping curve, its total revenue…

A: When talking about monopoly market, monopolist charges a price that lies on demand curve and with…

Q: Asked Dec 16, 2019 a monopolist finds the demand curve to be linear. with data points (q,p) on…

A: The demand curve of the monopolist can be found by using the given points as follows:

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: Using a simple diagram, illustrate how the monopolist can produce output of a competitive firm but…

A: Monopolist refers to the type of economy or market where it is characterized by a single seller or…

Q: Would a monopolist increase society’s economic welfare? explain with diagram if necessary

A: Monopoly refers to the market where only single seller exists in the market. Single seller has…

Q: do unregulated monopolists always make postitive economic profits? use a graph to show that a…

A: Unregulated monopolist:- A monopoly is a company which is the single supplier of its commodity and…

Q: Budget Burger is a monopolist. His demand curve, total revenue curve, marginal revenue curve and…

A: Market Power is defined as a company's ability to set the price of a product. Monopoly power is…

Q: What makes a firm become a natural monopolist, and how does it become a barrier to entry of new…

A: A natural monopoly happens due to the economies of scale which result in a large range of output but…

Q: ATC $ MC MC ATC D MR MR Quantity (a) Quantity (Б) ATC MC D MR Quantity (c) Which of the graphs above…

A: In long run, a monopolist earns zero economic profit.  It means price and ATC are equal in the long…

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

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

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: Graphically shows how monopolist can earn profit in short-run

A: Monopoly refers to the market structure in which there is a single seller than caters to the whole…

Q: Why is the price charged by monopolist competitive firms above their marginal revenues? What is…

A: Meaning of Monopolistic Competition: The term monopolistic competition refers to the situation…

Q: In which case a profit-maximizing monopolist will be resource-allocative efficient? Explain your…

A: On the off chance that the monopolist can remove all excess from her purchasers, it will see it…

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

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

Q: How does a monopolist decide its production and pricing strategy? Explain.

A: Monopoly market: It is a kind of market where a single seller is selling goods and services which…

Q: Being the only firm in the industry could monopolist determine both its price and output at the same…

A: Monopoly is the market structure with sole producer, selling unique and exclusive products with many…

Q: Why is a monopolist’s marginal revenue less thanthe price of its good? Can marginal revenue ever…

A: A monopoly refers to single seller in the market with no close substitutes for his products. This…

Q: Single Price Monopolists produce where P=MC True O False

A: Monopoly means a complete hold of a single seller on the whole market for a product.

Q: A monopolist maximizes profit at the quantity at which: O P= AC. MR = AC. %3D O MR = MC. OP = MC.

A: A monopoly is a market arrangement in which only one supplier or business operates.This single…

Q: Referring to the diagram, the monopolist will charge a price of ______ and sell quantity of _______

A: A monopoly is a market form in which a single seller sells unique products, and the firms’ products…

Q: 66. In the video, which point would on the two graphs would the monopolist select that would…

A: Profit maximizing output occurs at the point where the marginal revenue is equal to marginal cost.…

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

A: The profit-maximizing output is one in which a business unit realizes or earns the highest amount of…