on 8 monopolist will maximize its profit when it produces the quantity of output at which: OA. MR = MC. %3D O B. MR = P. O C. MC is minimized. O D.P is maximized.
Q: 1. Charlie's Umbrellas has a production function given by Q = L0.5KO.5. The wage (W) is $80 per day…
A: Answer; Here production function is: Q= L0.5K0.5 Marginal products are: MPL= dQ/dL =…
Q: Suppose there are two classes of buyers in a market served by a monopolist. At this point the two…
A: A monopolist is a single seller and the sole producer in a monopoly market. The monopolist has the…
Q: A monopolist if it chooses to sell fewer units of output. a. can set its price wherever it desires…
A: In monopoly, eqm quantity is found by the intersection of MC(marginal cost) and MR(marginal…
Q: If a monopolist is producing a quantity where MC >MR, then profit: O A. is maximized. B. is…
A: A monopolist is the sole supplier of the good in the market and therefore a monopoly firm faces the…
Q: A monopolist has a cost function given by c(3) = y and faces a demand curve given by P(y) = 120 – y.…
A: Marginal cost is the measurement of change in the cost of production with the change in the…
Q: If the monopolist maximizes profit, then deadweight loss would be O $0 $5,400 $10,800 none of the…
A: Answer - $5400
Q: Consider a monopolist facing an inverse demand of P=30-24 and possesing a total cost function of…
A: As given Inverse demand function is P = 30 -2q Total cost function is C(q) = 2q In the monopolist…
Q: Suppose the inverse demand for a product is P(Q) 30-2Q. This implies that the marginal revenue is…
A: Monopoly creates deadweight loss as it charges high price and produce low quantity of output.
Q: Two different boutique wineries supply two towns: town A and town B. Winery 1 supplies town A and…
A: Given The marginal cost of each winery MC=20 Initially, winery 1 supplies town A having demand…
Q: Consider a market with the following kinked inverse demand P=20-3q for q ≤ 3 and P=14-q for q>3. A…
A: An person, organization, or corporation that dominates and controls the market for a particular…
Q: A monopolist faces inverse market demand of P = 140 - and has Total Cost given by TC(Q) = 20? + 10Q…
A: Profit maximization is a manner commercial enterprise corporations go through to make certain the…
Q: Which of the following regarding a monopolist is INCORRECT? O The monopolist is a single supplier of…
A: Monopoly is a single seller in the market selling unique good with no substitutes.
Q: A monopolist earns $30 million annually and will maintain that level of profit indefinitely,…
A: Present value is an important mathematical concept in the ambit of Mathematical Economics. Present…
Q: A monopolist earns $40 million annually and will maintain that level of profit indefinitely,…
A: We are going to find the present worth of current period profit and future period profit to answer…
Q: A monopolist faces the inverse demand function P(x) = a - bx and produces with constant marginal…
A: Since you have posted multiple questions, will be answering only first part.
Q: Consider a monopolist facing an inverse demand of P=30-29 and possesing a total cost function of…
A: As given Inverse demand curve P = 30 -2q And Total cost function C(q) =2q The profit maximizing…
Q: 30. Price discrimination will be profitable only if the elasticity of demand in different markets…
A: When different prices are being charged by sellers from various customers for the same service or…
Q: Which of the following statements about a monopoly is true? (a) The monopolist has a flat demand…
A: Answer: (d) Price, in the long run, is not usually equal to the minimum average total cost.…
Q: Consider a market with the following kinked inverse demand P=20-3g for q ≤ 3 and P=14-g for q>3. A…
A: Given demand functions P=20-3q---- when q<=3 P=14-q--- when q>3 Marginal Cost=m
Q: When a monopolist sells two units of output its total revenue is R600. When aa monopolist sells…
A: Here, it is given that the total revenue from selling 2 units is R600 and total revenue from selling…
Q: Price a. Ps PA P3 AC P2 MC P, Q, Q2 Q3 Quantity/time MR Refer to the above figure. If the government…
A: Monopoly is a market situation where there is only one seller and many buyers selling goods and…
Q: In order to maximize profits, a monopolist would choose to produce units which is less than the…
A: The total production process is an amalgamation of various costs, the optimum quantity that must be…
Q: c. Now suppose that the monopolist can perfectly price discriminate. What quantity will it produce?…
A: Perfect price discrimination monopolist produces such quantity where price equals marginal cost and…
Q: The single-price monopolist produces where price is than marginal cost because for it price is than…
A: The structure of the market where there is only one seller in the market and there exist high…
Q: A monopoly is a market with O A) no barriers to entry. B) many substitutes. C) many suppliers each…
A: Monopoly refers to a market structure in which only one firm has the entire market.
Q: In order to maximize profits, a monopolist would choose to produce units which is less than the…
A: The profit-maximizing for the monopoly market is that to produce at the quantity where marginal…
Q: Which of the following statements is not correct? Select one Oa A single price monopolist is more…
A: Price is the value of the commodity that determines on the basis of demand and supply for a product.…
Q: 2) À monopolist is deciding on the quantity of output to produce in two different countries. Demand…
A: Given We have the following information Demand equation of country 1: Q1 = 12 – P1 or P1 = 12 – Q1…
Q: Give two examples of price discrimination. In each case, explain why the monopolist chooses to…
A: The price discrimination refers to the pricing practice where the producers sell similar types of…
Q: If we require a monopolist to stop practicing ordinary price discriminationacross two markets, one…
A: A monopolist is a person, organisation, or company that has complete control over a market for a…
Q: Assume that a large supermarket allows its customers to choose whether they will pay a lower price…
A: Price discrimination refers to the practice of charging different prices from different customers.…
Q: Let the inverse demand curve in a market be given by P(Q) = 259-20*Q. We consider a monopolist…
A: The monopolist firm gets the benefit to serve the whole consumer demand on its own. This allows it…
Q: Assume the demand and total cost functions for soccer balls are given in the following form: Demand:…
A: The monopoly is the type of market structure where there are large number of buyers but there is…
Q: 3- Faced with two distinct demand functions Q_{1} = 24 - 0.2P Q_{2} = 10 - 0.05P_{2} Where TC =…
A: Introduction We have given two demand function of a firm where one has price discrimination and…
Q: A monopolist faces an inveese linear demand function of p(q) = 20 – q and cost function of C(q) = 10…
A: The cost function is the technique of evaluating “the performance of our algorithm/model”. It takes…
Q: A monopolist w11ishes to maximize total revenue. She produces two outputs, (x1, x2) and faces the…
A: Given: X1 = 20 – 2p1 p1 = 10 - 0.5X1 X2 = 20 – 4p2 p2 = 5 - 0.25X2 To produce x1 the monopolist…
Q: Quantity Demanded Price $8 $7 $6 $5 8 $4 9 $3 10 $2 11 TABLE 10- 1 Refer to Table 10 - 1. For a…
A: A monopoly refers to the market condition in which a single seller control the whole market and have…
Q: Monopoly ceases if the demand for the good is Little flexibility. 0 O not flexible. Flexibility…
A: A monopoly market is one in which there is only one seller and no competition from other sellers.…
Q: If a monopolist with significant barriers to entry is making positive economic profit in the short…
A: Monopoly is a market in which there is only one seller and many buyers of product and service.…
Q: Consider the following inverse demand curve: p = 300 – 3Q A firm's cost function is given by C(Q) =…
A: here we can get answer of given by following method
Q: The demand for a monopoly's output is p=80-Q. The firm's production function is Q=2L Which of the…
A: The labor demand curve of a firm shows the negative relationship between wage rate and the quantity…
Q: Which of the following statements is not correct? Select one: A single price monopolist is more…
A: A monopoly is a firm who is the sole seller of its product, and where there are no close…
Q: The monopolist has constant marginal and average cost AC=MC=70 and faces the market demand P-120-Q.…
A: here we calculate price and consumer surplus , so the calculation of the following by using the…
Q: A monopolist faces the demand schedule above. If the monopolist faces a constant marginal cost of…
A: For monopolist, the profit maximizing condition is where MR = MC. At this point, the firm will…
Q: Suppose a monopolist knows the own price elasticity of demand for its product is -2 and that its…
A: Best or optimum level of output for a firm is determined at the point where it's marginal cost…
Q: Firm Gamma is the monopolist of a particular market. Gamma's cost function is C= 3Q? The demand for…
A: The monopoly is the sole supplier of a unique or a good with no close substitute. The monopolist has…
Q: Price of X Po Quantity of X Refer to Exhibit 23-6. The price and quantity of a single-price…
A: A monopoly is the sole producer of a good in the market thus having maximum market power hence acts…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Signaling. There are two firms, A and B. There are two time periods, 1 and2. There is one commodity, that can be produced by both firms, at linear cost. So,if firm i has marginal cost i, then the cost of producing q units of the commodity is ciq. The inverse demand for the commodity, at any given moment, is 100 − 4Q,where Q is the aggregate supply at that moment.In period 1, firm A is alone in the market. Firm A’s marginal cost is determinedby Nature, either it is 10 or it is 2, each with probability 1/2. A knows it’s cost.Firm A produces some quantity in period 1 and firm B observes this. Betweenperiods 1 and 2, firm B decides to enter the market or not. After making thisdecision, B is told firm A’s cost. It is too late at this point for B to change itsaction.In period 2, if B is in the market, then A and B compete on quantity.(1) In words, what are the steps to solving this problem?(2) There are two possible quantity-competition games that happen in this game.Solve them both.(3) Now…The marginal and average total cost curves for barbers in an area are cosntant at $12.00/haircut. The daily demand curve for haircuts in the area is given by: P = 22 - 0.001Qd where P is the price in dollars per haircut and Qd is the daily quantity demanded in number of haircuts. Haircuts are provided in a perfectly competitive market and each barber can provide exactly 25 haircuts daily. Suppose that the government decides to limit the number of barbers to 320. Each year, barbers must obtain a government-issued license to cut hair. Based upon the previous information: a. What will be the long-run equilibrium price for a haircut given there are only 320 licensed barbers?b. How much economic profit will each licensed barber earn daily?Advocates of the minimum wage admit that it has some adverse effects, but they believe that these effects are small and that a higher minimum wage makes the poor better off. a. True O b. False Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Which returns to scale will an efficient firm choose? What market structure has no loss in long run? What production function shows the maximum quantity of goods or services that can be produced with a set of inputs assuming one of the inputs used remains unchanged? Capacity planning refers to adjustment in production considering the what? What can destroy monopoly position?(a) Show that if, for a given firm, Z has free disposal, then V(y) is comprehensive upwards for every y. (Assume the firm has N inputs and M outputs.) Show by example that the converse is false. If each V(y) is comprehensive upwards and the nesting property holds (if y ≥ y', then V(y) ⊆V(y')), does the corresponding set Z have free disposal? (b) Show that if Z is convex, then each V(y) is convex. Show by example that the converse is false.To maximize profit, a price taker will expand its output as long as the sale of additional units adds more to revenues (marginal revenues) than to costs (marginal costs). Therefore, the profit-maximizing price taker will produce the output level at which marginal revenue (and price) equals marginal cost. In a price-taker market, if a business produces efficiently (i.e., that is, where marginal revenues = marginal costs), the firm will be able to make at least a normal profit. True of False. Explain
- Subject: Menagerial economics & policy Mcq's 15) In a perfectly competitive market a) AR>MR b) AR=MR c) AR d) None of the above 16) In a perfectly competitive market a) P=MR b) P>MR c) P d) None of the above 17) If AFC is 40 and AVC is 80 then ATC is a) 40 b) 120 c) 100 d) None of the above 18) Perfect Competitive markets are a) price takers b) price makers c) public franchise d) None of the aboveImagine there is a firm that only uses labor to produce goods and that its production function is given by Y(L)=5L-L^2. The price of the firm’s output is equal to 1. Let’s assume the firm is a price taker on the product market but is a local monopsony for employment. Imagine that its marginal cost is given by 2+L. Imagine that labor supply is given by 1+L How much labor does the firm want to use? What will be the wage it pays? How many people will work if the government imposes a minimal wage of 2.25? How will this affect the firm’s profit? Calculate and compare before and after the introduction of the minimum wage.True or false in most short, run production processes, producers, have an economic incentiveto substitute, less productive inputs in place of more productive inputs, in order to increaseefficiency.
- a) Derive the goods market demand curve in terms of the output (Y) and the exogenousvariables:c0,c1,b0,b1,g0,g1andT. Show your work for full credit. b)Draw the Goods Market Equilibrium. Be sure to label all curves, label the equilibrium point, and label the slope of each curve. c)Solve for the equilibrium output (Y) in terms of the exogenous variables:c0,c1,b0,b1,g0,g1andT. Show your work for full credit. d)Supposeg1increases, but stillc1+b1+g1<1. Using a graph of the goods market, show how we would represent an increase in the value ofg1on equilibrium output y. Be sure to label all axes, curves, and equilibrium points. e)Suppose instead,c1+b1+g1= 0. Is the equilibrium in the goods market still possible? If so, what is the equilibrium output? You must explain your answer to receive full credit.Consider a firm that is perfectly competitive in the market for inputs and outputs. Thefirm hires two types of workers: low-skill (high school graduates and high school dropouts) andhigh-skill (undergraduate and postgraduate degree) workers. The firm compensates high-skilledworkers at the rate wH and low-skill workers at the rate wL. It produces the output subject to aCobb-Douglas production technologyF(L,H) = (AH)α(L)β,where H - is the amount of high-skill hours, L - the amount of low-skill hours, and A - thetechnology parameter that augments the productivity of the high-skill labour. 4. In the short run, the firm cannot increase the amount of high-skill labour . Derive the1short-run demand for low-skill labour.5. What is the substitution effect of the wage increase in the short-run?6. Derive the long-run cost-minimizing demands for high- and low-skilled labour. Show thesolution to the cost-minimization problem on the graphIt is an aspect of microeconomics that helps in analyzing the various types of demand which enables the manger to arrive at reasonable estimates of demand for a product or his company. * market structures theory of the firm demand analysis production function
