Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184241
Author: Robert Pindyck, Daniel Rubinfeld
Publisher: PEARSON
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Question
Chapter 10, Problem 5E
(a)
To determine
The marginal revenue curve of the firm.
(b)
To determine
The profit maximizing output, price, and profit of the firm.
(c)
To determine
The equilibrium price and quantity for a competitive industry.
(d)
To determine
The social gain when the monopolist is forced to produce at equilibrium.
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Students have asked these similar questions
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10:
Price
18
16
14
12
10
8
6
4
2
0
Quantity
0
4
8
12
16
20
24
28
32
36
a. Calculate the firm's marginal revenue curve.
b. What are the firm's profit-maximizing output and price? What is its profit?
c. What would the equilibrium price and quantity be in a competitive industry?
d. What would the social gain be if this monopolist were forced to produce and price at the competitive equilibrium? Who would gain and lose as a result?
Use the following Table showing the demand schedule for a monopolist facing a
constant marginal cost of $4. Assume that the firm pays no fixed costs. How many
units of output will the firm produce, and how much economic profit will be earned?
Quantity Demanded
1
2
3
4
5
6
7
8
9
Price
$12
$11
$10
$9
$8
$7
$6
$5
$4
A) 5 units; $8
B) 5 units; $40
C) 7 units; $36
D) 7 units; -$6
E) 5 units; $20
Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost.
Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit.
Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly. kindly solve all the parts.
Chapter 10 Solutions
Microeconomics (9th Edition) (Pearson Series in Economics)
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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