Which of the following will always be true for both single-price monopoly and monopolistic competition in the short run? O Price equals marginal cost. O Price is greater than marginal revenue. Short run profits are positive. Price equals marginal revenue.
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- These are statements comparing monopoly with perfect competition. Which of the following statements is/are false? Select all that apply. A. A a perfectly competitive industry faces a horizontal straight line demand curve whereas a monopoly faces a downward sloping demand curve. B. A perfectly competitive firm faces a small fraction of the industry demand curve whereas a monopoly faces the entire market demand curve. C. A perfectly competitive firm can only set quantities; a monopoly can set both price and quantity, although once it chooses a price (quantity), the other variable, quantity (price), is determined by the demand curve it faces. D. A perfectly competitive equilibrium is efficient; a monopoly equilibrium is inefficient. E. A perfectly competitive firm necessarily earns zero economic profit in a long run equilibrium; a monopoly typically earns a super-normal profit in a long run equilibrium.Comparing a perfectly competitive market to a monopoly, which of the following is true? Group of answer choices Price will be higher than marginal cost in the perfectly competitive market but will beequal to marginal cost in the monopoly. Price will be equal to marginal revenue in the perfectly competitive market but will behigher than marginal revenue in the monopoly. at that point on the market demand curve which intersects the marginal cost curve. Price will be higher and quantity will be lower in the perfectly competitive market than inthe monopoly.What will a long-run equilibrium for a monopoly most likely result in? . a economic losses or profits and production either more or less than the amount at which costs are a minimum. b either zero or positive economic profits and production less than the amount at which costs are a minimum. c zero economic profits and production less than the amount at which costs are a minimum d economic profits and production less than the amount at which costs are a minimum.
- When we compare monopoly to perfect competition in the long run,we expect the monopoly model to generate an outcome with Question 9 options: higher prices, break-even profits, and allocative efficiency higher prices, economic profits, and allocative efficiency lower prices, economic profits, and deadweight Joss higher prices, break-even profits, and deadwcight loss higher prices, economic profits, and deadweight lossOne of these four answers best represents the condition that generates a natural monopoly. Which one? OA single firm controls an industry because there are very few customers in the industry. The government prohibits entry into an industry. O The firm takes anti-competitive actions to keep other firms out. O Economies of scale are large relative to quantity demanded in a marketWhat is a monopoly and why does it differ from perfect competition? discuss an example of monopoly, its source of market power, and possible policy solutions to correct the negative consequences stemming from highly concentrated market power.
- What is true about the monopoly's marginal revenue? Assume no price discrimination please (just one price can be used) Question 1 options: Marginal revenue is lower than the price (except for the first unit), because selling more requires the monopoly to discount the former units as well Marginal revenue is higher than price None of the other answers is correct Marginal revenue is equal to priceWhich of the following is a characteristic shared by a perfectly competitive firm and a monopoly? Select one: a. Each must lower its price to sell more output. b. Each sets a price for its product that will maximise its revenue. c. Each maximises profits by producing a quantity for which marginal revenue equals marginal cost. d. Each maximises profits by producing a quantity for which price equals marginal cost. e. Each minimises average total cost by producing a quantity for which price equal average revenueSuppose that an industry is characterized as follows: C = 100 + 2q2 each firm’s total cost function MC = 4q firm’s marginal cost function P = 90 – 2Q industry demand curve MR = 90 – 4Q industry marginal revenue curve If this industry is a monopoly, how many units of output will the firm produce? (fractions of output are possible) A. 11.25 B. 20 C. 15 D. 10
- If an industry could be organized either perfectly competitively or as monopoly, a monopoly would produce less output. produce where P > MC. charge higher prices. All of thesePlease label your graphs axes correctly. Label all curves and shade properly Supply and Demand, show an elastic, inelastic, perfectly elastic, and perfectly inelastic Demand Price ceiling in effect and what it causes in terms of quantity and surplus or shortage, dead weight loss Perfectly Competitive firm showing profit, MC, ATC, Demand Perfectly Competitive firm in shutdown Side by side graphs, market and PC, showing the transition from losses to long-run Monopoly graph, show the following: Where demand is elastic where they maximize total revenue, Socially optimal price, productively efficient profit, Consumer surplus deadweight loss producer surplus 7. Factor Market- side by side graphs with a labor market 8. Monopolistic competition in the long-run 9. Economies of scale, diseconomies of scale 10.Trade graph, showing free trade and showing the tariff. Label and shade DWL Consumer/Producer surplus on both deadweight loss tax revenue 14. Negative externality in…A monopolist producing and selling cooking gas faces a demand curve, Q = 100 – 0.2P. If Total Cost is TC=4000+ 50Q. i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit. ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm. iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations. a. Suppose the joint cost function of a firm producing two products X and Y IS given by C = 250X2 + 120Y2. Assuming that output of the two products is restricted at 1369. i. Using Lagrangian multiplier technique find the amounts of X and Y that will minimize cost and compute this cost. ii. Examine the cost implications of changing this optimal combination so as to produce 236 additional units of X and 236 fewer units of Y.
