International Edition---microeconomics, 9th Edition
9th Edition
ISBN: 9780134674551
Author: Robert Pindyck And Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 10, Problem 12E
(a)
To determine
The profit maximizing price of the firm, quantity and profit.
(b)
To determine
The long run price of the firm, quantity and the profit earned by the firm.
(c)
To determine
Lower MC in the short run.
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Students have asked these similar questions
Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices?
One difference between a competitive firm and a monopoly is that __________________.
a. monopoly makes economic profits, but a competitive firm never makes economic profits
b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve
c. the cost curves of a monopoly are always below those of a competitive firm
d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scale
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.
Chapter 10 Solutions
International Edition---microeconomics, 9th Edition
Ch. 10 - Prob. 1RQCh. 10 - Prob. 2RQCh. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Prob. 7RQCh. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - Prob. 14RQCh. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - Prob. 7ECh. 10 - Prob. 8ECh. 10 - Prob. 9ECh. 10 - Prob. 10ECh. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Prob. 13ECh. 10 - Prob. 14ECh. 10 - Prob. 17ECh. 10 - Prob. 19E
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