Qq,42.Subject :- Economy QUESTION 30Price, costmarginalrevenue ofdiamond$1,0008006004002000--200-400O a. $6400b. $0.OO c. $1600d.$32008 10MRMC016 20Quantity of diamondsWhen the firm in the graph above is a monopoly and chooses its profit maximizing price and quantity, profit is equal toATC.if MC=

In a monopoly, demand curve and marginal revenue curve are downward sloping. Marginal revenue lies…

QUESTION 30 Price, cost marginal revenue of diamond $1,000 800 600 400 200 --200 -400 8 10 MR MC 16 20 Quantity of diamonds When the firm in the graph above is a monopoly and chooses its profit maximizing ATC. O a. $6400 O b. $0 Oc. $1600 Od. $3200

QUESTION 30 Price, cost marginal revenue of diamond $1,000 800 600 400 200 --200 -400 8 10 MR MC 16 20 Quantity of diamonds When the firm in the graph above is a monopoly and chooses its profit maximizing ATC. O a. $6400 O b. $0 Oc. $1600 Od. $3200

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...

See similar textbooks

Related questions

Q: suppose Scotland produces only pressure cookers and air fryers. The that are used in the production…

A: The PPF represents all those possible production bundles of two products an economy can produce when…

Q: Critically evaluate how happiness is related to economic development.

A: Economic development is the process through which a country's economy expands and strengthens over…

Q: Suppose a lender knows that in a group of 100 borrowers, 84 borrowers will repay in full and 16…

A: Given: 100 borrowers 84 repays in full 16 repays half

Q: Assume a technological change in production that makes both inputs, capital and labour more…

A: An isoquant is a curve which shows the efficient combinations of labor and capital, that can…

Q: 1.) Suppose you have a 10 identical firm Cournot Oligopoly. You don't have a demand equation but you…

A: As the relationship between the MR and the price is given as: MR = P(1 + 1/e) MR : Marginal…

Q: Assume you have placed a value of operations on Champion Inc. of $3,500,000. The firm has marketable…

A: To calculate the intrinsic value of the firm's common stock, we need to subtract the value of the…

Q: Can you explain what the Pure Coordination Game is and provide an example of one?

A: Game theory is a mathematical system for studying tactical interactions among rational…

Q: Illustrate diagrammatically stabilization versus allocation policies

A: Stabilization policies and allocation policies are two types of economic policies that can be…

Q: Suppose that a firm in a competitive market has the following cost curves: PRICE 20 18 16 41312 10 8…

A: In perfect competition, There exists a large number of buyers and sellers. The firm produces…

Q: Economics Consider a potential criminal with a lawful income of $121. Potential loot from robbery…

A: Utility is a measure of the satisfaction or benefits that an individual derives from consuming or…

Q: Which of the following statements can you verify as correct, given the information ed?

A: A perfectly competitive firm is a price taker, which indicates firm takes the price set by the…

Q: Suppose Italian workers can produce 4 cars per year and German workers can produce 8 cars per year.…

A: Comparative advantage refers to the ability of a country to produce a good or service at a lower…

Q: below: The table below shows, respectively, the Federal debt, nominal GDP (in billions of $), and…

A: The debt-to-GDP ratio is a measurement of a nation's debt load that is stated as a proportion of…

Q: Suppose a firm purchases labour in a competitive labour market and sells its product in a…

A: Elasticity is calculated as the percentage change in quantity divided by the percentage change in…

Q: The inverse demand for leather is given by P = 50-0.5Q. The industry supply of leather is determined…

A: External costs, also known as negative externalities, are the unintended and uncompensated costs…

Q: Given the information in the table below: Unit labour requirements Widgets Home Foreign Cloth 10 60…

A: Absolute advantage refers to the ability of a country, individual, or firm to produce more output of…

Q: The demand and supply functions in the market for Dentemprika yam are given as: Q =300-50P and…

A: The equilibrium is attained where the demand and supply forces are equal. Following are the given…

Q: The total fresh vegetables consumed per person per year where can be modeled by V(t)=0.5(t-4)²-3…

A: Here, It has been given a model. V(t) = 0.5(t-4)2 - 3 Whereas, V(t) = Total Fresh vegetables…

Q: what is the role of adidas as a private enterprise in society. Please answer with detail

A: Private enterprise refers to businesses that are owned, operated, and controlled by individuals or…

Q: Assume a Hawk -Dove game with the following payoff matrix, where the first entry is Animal A's…

A: The phrase "Nash equilibrium" in economics and game theory refers, in its simplest form, to a stable…

Q: QUESTION TWO a) Given labour demand curve LDi = 40 − 5wi + 2wj, and wages labour market I and labour…

A: Labour market: labour market is a market where the firms and households interact. The firms demand…

Q: Imagine that you run the toll authority for a city bridge. You must charge all of your customers the…

A: Elasticity measures the responsiveness of quantity demanded with respect to change in price. Total…

Q: Pisa Pizza, a seller of frozen pizza, is considering introducing a healthier version of its pizza…

A: Given: New pizza sale = $16 millions 31% of this new pizza sales is coming from old customers who…

Q: Which circumstance would contribute to a relatively flat slope of the short-run aggregate supply…

A: Short-run aggregate supply (SRAS) represents the quantity of total output that will be produced in…

Q: If trade barriers hurt the average worker (typically due to lower wages and higher prices), then why…

A: The cross-border exchange of goods and services is known as international trade. International trade…

Q: d) Suppose everyone starts writing more research papers and the new market demand is given by: Q =-…

A: Given For part D Market demand curve: Q=-200P+10,000 Market supply curve: QS=1000P-2000 At the…

Q: A manufacturer faces the demand function, 20Q + 5P = 120 (where Q is quantity and P is price), and…

A: The profit is maximized where the MR =MC. The Revenue is maximized where the MR =0. Consumer surplus…

Q: Joe's search costs are $5 per search. He wants to buy a smart watch for his wife for Christmas, and…

A: A choice to outcomes that are well-expected for all the variables is referred to as an optimal…

Q: where are the prices they have to pay in each?

A: Prices have been calculated by the expert in both conditions

Q: 2. Implications of inflation and deflation Suppose that you are running a business, and you need…

A: The situation which depicts a general rise in prices of goods and services in an economy during a…

Q: Which statement about business cycles is correct? Select one: a. When GDP goes up, GDP per capita…

A: The business cycle refers to the fluctuation in economic activity characterized by alternating…

Q: Ve estimate a simple regression explaining monthly salary (salary) in terms of IQ score Q), using…

A: A regression equation is a mathematical formula that describes the relationship between a dependent…

Q: 1 Answer the questions based on the figure below, which is for the country of Quantz. Quantity of…

A: Production Possibilities means to the various combinations of goods and services that can be…

Q: Suppose that you are running a business, and you need some extra space for one year. Your bank…

A: Deflation is the term used to describe an ongoing decline in the cost of products. To put it another…

Q: Examples of price discrimination Complete the following table by determining whether or not each…

A: Price discrimination is the practice of charging different prices for the same good or service for…

Q: Should the government use monetary and fiscal policy in an effort to stabilize the economy? The…

A: The economy is at its full potential when it is producing at the long run aggregate supply curve,…

Q: A country engaging in trade according to the principles of comparative advantage gains from trade…

A: In term of economics, the principle of comparative advantage is the ability of a nation, individual,…

Q: Price P4 OP3 OP5 MC The profit-maximizing monopolist charges price P2 91 9₂ 93 9 ATC Quantity

A: To maximize profit, a Monopolist produces its output where Marginal Revenue (MR) is equal to…

Q: A profit maximizing firm produces output using capital, K, and labour, L, in the following…

A: Optimal amount of capital will be when profit is maximized: Profit = Total Revenue- Total Cost…

Q: Discuss general Trade Terms according to the international Business Law in details.

A: Trade terms, also known as Incoterms, are a set of standardized terms that define the rights and…

Q: Discuss today’s economy as it reflects the business cycle. See recent reports from GDP 2020 to 1st…

A: The economic growth is measured by the metric of gross domestic product (GDP). It is the value of…

Q: An industrial juicer costs $55,000. It will be used for five years and then sold to a remarketer for…

A: Computation of the net yearly savings required to justify the purchase: To compute the net yearly…

Q: 8. Economic fluctuations I The following graph shows a hypothetical economy in long-run equilibrium…

A: Savings are the funds that a consumer does not spend on products and services. It is a portion of…

Q: ii. iii. iv. V. vi. How much potash would actually be purchased if the price was $280 per tonne? How…

A: Equilibrium price and quantity refer to the point in a market where the quantity of a good or…

Q: According to David Ricardo, A. If countries specialize where they have a comparative advantage and…

A: Opportunity cost refers to the value of the next best alternative that must be given up in order to…

Q: 1. Consider a deterministic DGE model where time lasts for two periods. The representative consumer…

A: Dynamic stochastic general equilibrium (DGE model) is a macroeconomic method of explaining…

Q: How much should I invest today and expect a reimbursement every other month with a rate of 8.0%…

A: PMT = P3,333 monthly Time (n) = 4 years or 48 months Interest rate = 8.0% compounded bi-monthly PV =…

Q: Explain why economic fluctuations happen according to Keynesians. Why do expansions happen, and…

A: An economic school of thought is a particular point of view or approach for comprehending economic…

Q: Boston Chicago ng table socks. socks. Pairs of Red Socks per Worker per Hour Pairs of White Socks…

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

Q: The necessary condition for a budget to be considered fiscally sustainable is that: (a) it is…

A: A government budget is a financial plan that establishes a government's income and expenditures for…

Question

Qq,42.

Subject :- Economy

QUESTION 30
Price, cost
marginal
revenue of
diamond
$1,000
800
600
400
200
0
--200
-400
O a. $6400
b. $0.
O
O c. $1600
d.
$3200
8 10
MR
MC
0
16 20
Quantity of diamonds
When the firm in the graph above is a monopoly and chooses its profit maximizing price and quantity, profit is equal to
ATC.
if MC=

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Monopoly

VIEW

Step 2: Profit maximisation

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?
How does the demand curve perceived by a monopolist compare with the market demand curve?
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
If the transit system were allowed to operate as an unregulated monopoly, what output would it supply and what price would it charge?
If public utilities are a natural monopoly, what would be the danger in deregulating them?
If the transit system were regulated to operate with no subsidy (i.e., at zero economic profit), what approximate output would it supply and what approximate price would it charge?
What is the usual shape of a marginal revenue cuwe for a monopolist? Why?
Suppose demand for a monopolys product falls 50 that its profit-maximizing price is below average variable cost. How much output should the film supply? Hint: Draw the graph.
What is a legal monopoly?
Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you?
How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?
Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?