MICROECONOMICS CONNECT STUDY GUIDE
21st Edition
ISBN: 9781260297287
Author: McConnell
Publisher: MCG
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Question
Chapter 12.4, Problem 4QQ
To determine
Profit maximizing output.
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Check out a sample textbook solutionStudents have asked these similar questions
Demand: P=120-Q Total Cost: TC=Q2
Ā
Marginal Revenue: MR=120-2Q Marginal Cost: MC=2Q
Ā
For this monopolist, the profit-maximizing price is ________ and the profit-maximizing quantity is _________.
Ā
A 40, 80
B 90, 30
C 20, 80
D None of these answers
Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs are $1.5 million. Its revenues are $1.2 million. Should the firm shut down in the short run? Should it leave the industry in the long run?
Ā
a
no; yes
b
no; no
c
yes; yes
d
yes; no
Monopoly Market
MC - Marginal Cost
MR - Marginal Revenue
D - Demand
ATC - Average Total Cost
Refer to the figure above. If this monopolist is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm'sĀ Ā profitĀ will be:
Ā
Ā
$5
Ā
Ā
$20
Ā
Ā
$40
Ā
Ā
$60
Ā
Ā
2.5 points
Chapter 12 Solutions
MICROECONOMICS CONNECT STUDY GUIDE
Ch. 12.4 - The MR curve lies below the demand curve in this...Ch. 12.4 - Prob. 2QQCh. 12.4 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQ
Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - 10. LAST WORD Using Big Data to set personalized...Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
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- A monopolist is faced with the following cost and revenue curves:(picture) a.What is the maximum-profit price and output,total revenue, total cost and profit? b.If the monopolist were ordered to produce 300 units, what would be the market price and how much profit would now be made c.If the monopolist were faced with the same demand, but average costs were constant at Ā£60 per unit, what output would maximise profit? What would be the price now?................................................................................................. (j)Ā Ā Ā Ā How much profit would now be made? ................................................................................... Ā (k)Ā Ā Ā Assume now that the monopolist decides not to maximise profits, but instead sets a price of Ā£40. How much will now be sold? .................................................................................................................................................. Ā (l)Ā Ā Ā Ā What is the marginal revenue at thisā¦arrow_forwardIn the short run, a monopolist will shut down if it is producing a level of output where marginal revenue is equal to short run marginal cost and price is: A. Greater than average total costB. Less than average total costC. Greater than average variable cost D. Less than average variable costarrow_forward
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