Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are:TotalTotalSold per DayPrice per MealFixed CostVariable CostTotal Revenue$3.50$150100$3.25$150$300$325200$3.00$150$500$600300$2.75$150$650$825400$2.50$150$750$1000500$2.25$150$830$1125600$2.00$150$905$1200700$1.75$150$995$1225TABLE 10-2Refer to Table 10-2, and suppose that the firm is a single-price monopolist. At the profit-maximizing level of output, the price elasticity of demand isgreater than one.O one.infiniteO less than one.impossible to know with the available information.Suppose a monopolist faces the demand curve and cost curves shown below.P5MCATCDemandPoMRQ4QsQuantityFIGURE 10-4Refer to Figure 10-4. If this single-price monopolist is producing at the profit-maximizing level of output, the total profit is represented by the areaO PaceP2.O PąabP2.O OPofQo-O OPgaQo-O OP26Q0-At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies thatO not enough information to determine the answer.O there are diseconomics of scale.there are economics of scale.O there are neither economies of scale nor diseconomies of scale.there are either economies of scale or diseconomies of scale.When average product is at a maximum ,marginal product is equal to APO O ODollars

sold per day price per meal($) total fixed cost($) total variable cost($) total revenue($) 0 3.50…

Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Total Total Sold per Day Price per Meal Fixed Cost Variable Cost Total Revenue $3.50 $150 100 $3.25 $150 $300 $325 200 $3.00 $150 $500 $600 300 $2.75 $150 $650 $825 400 $2.50 $150 $750 $1000 500 $2.25 $150 $830 $1125 600 $2.00 $150 $905 $1200 700 $1.75 $150 $995 $1225 TABLE 10-2 Refer to Table 10-2, and suppose that the firm is a single-price monopolist. At the profit-maximizing level of output, the price elasticity of demand is

Your food-services company has been named as the sole provider of meals at a small university. The cost and demand schedules are: Total Total Sold per Day Price per Meal Fixed Cost Variable Cost Total Revenue $3.50 $150 100 $3.25 $150 $300 $325 200 $3.00 $150 $500 $600 300 $2.75 $150 $650 $825 400 $2.50 $150 $750 $1000 500 $2.25 $150 $830 $1125 600 $2.00 $150 $905 $1200 700 $1.75 $150 $995 $1225 TABLE 10-2 Refer to Table 10-2, and suppose that the firm is a single-price monopolist. At the profit-maximizing level of output, the price elasticity of demand is

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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