Is a monopolist allocatively efficient? Why or why not?

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: 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: 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: Why does the monopolist always produce only until that level of output where the own-price…

A: A monopolist tends to maximise its profit and produces the output up to that level at which MC = MR,…

Q: A monopolist is producing at a point where marginal cost exceeds marginal revenue. How should output…

A: Marginal revenue(MR) is the change in the Total Revenue(TR) on account of the sale of and additional…

Q: . Which one of the following is the condition of equilibrium for the monopolist?

A: Monopolist is the sole producer of the commodity in the market. The product sold by the monopolist…

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: If the price is greater than actual total cost, does the monopolist make a profit, loss, or…

A: Answer to the question is as follows :

Q: Why is there no supply curve fro a monopolist?

A: A monopolist has no supply curve. All in all, there is no extraordinary supply curve for the…

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: 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: nt for a monopoly?

A: Explanation: The equality of worth and price means the commodity's worth is adequate for the…

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: 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: Is this possible that the Monopolists necessarily make the profit?

A: Answer: As we know that the general concept or impression is that the monopolist has complete…

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: What are the necessary conditions for a monopoly position in the market to be established?

A: ANS The necessary conditions for a monopoly position in the market are as follows: Only one firm…

Q: Is a monopolist a price taker? Why or why not?

A: Perfect competition is the market structure with a large number of buyers and sellers who sell a…

Q: How does a monopolist decide its production amount and pricing strategy? Explain. Use of appropriate…

A: Monopoly is a market condition where there is a single seller. It sells a unique commodity in the…

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

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

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: Which one of the following is the condition of equilibrium for the monopolist?

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

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

A: A monopoly is a market where there is one seller for the product and the monopolist has control over…

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 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: Why does monopoly arise?

A: A market is a place where the trading between the buyers and sellers takes place, it is divided as…

Q: How does monopoly determine the optimum production level

A: Monopoly demonstrates as a market structure where there is a single seller. The monopolist has full…

Q: Will the monopolist produce an output level that is allocatively efficient?

A: In economics, allocatively efficient production occurs when the production is aligned with the…

Q: A monopolist produces _____________ product ?? what its answer ?

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: Explain why a monopolist never operates on the inelastic part of the demand curve

A: A monopolist trying to maximise profit produces output until MC Equals MR. It is stated, however,…

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: 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…

Q: The graph below shows the cost curves for a monopolist. What is the monopolist's profit at the…

A: For the monopolistic competition, profit is maximized at a point where MR and MC are equal. From the…

Productive and Allocative Efficiency Analysis

Productive efficiency, also referred to as production efficiency is a term in economics describing the level at which a company is operating at its maximum capacity. Beyond this point, the entity will be unable to manufacture any additional goods without cutting down another product’s production level. This occurrence is an outcome of production happening alongside a Production Possibility Frontier (PPF).