Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 14, Problem 6CQQ
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True of False: A monopolist selling cars in New York finds it unprofitable to raise price by 10% above the current level. Thus, the relevant market is cars in New York.
1. The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.).
2. Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market.
Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm’s total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week.What are the firm's weekly economic profits?
Chapter 14 Solutions
Essentials of Economics (MindTap Course List)
Ch. 14.1 - Prob. 1QQCh. 14.2 - Prob. 2QQCh. 14.3 - Prob. 3QQCh. 14.4 - Prob. 4QQCh. 14.5 - Prob. 5QQCh. 14 - Prob. 1CQQCh. 14 - Prob. 2CQQCh. 14 - Prob. 3CQQCh. 14 - Prob. 4CQQCh. 14 - Prob. 5CQQ
Ch. 14 - Prob. 6CQQCh. 14 - Prob. 1QRCh. 14 - Prob. 2QRCh. 14 - Prob. 3QRCh. 14 - Prob. 4QRCh. 14 - Prob. 5QRCh. 14 - Prob. 6QRCh. 14 - Prob. 7QRCh. 14 - Prob. 8QRCh. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Prob. 3PACh. 14 - Prob. 4PACh. 14 - Prob. 5PACh. 14 - Prob. 6PACh. 14 - Prob. 7PACh. 14 - Prob. 8PACh. 14 - Prob. 9PACh. 14 - Prob. 10PACh. 14 - Prob. 11PACh. 14 - Prob. 12PA
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Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
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monopolist’s profit-maximizing output is 500 units per week and it sells its output at a price of $70 per unit. The firm’s total costs are $15,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits?
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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's total cost will be:
$120
$160
$5
$100
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30.
A restaurant offers fajitas for $14 at lunch and $18 at dinner. This is which type of price discrimination?
1st degree
4th degree
2nd degree
3rd degree
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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's profit will be:
$5
$20
$40
$60
2.5 points
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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's total revenue will be:
$100
$160
$180
$120
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in a short run monopolist will shut down when_______ and a natural monoploy is most likely to occur in the market when_______?
from the attached tabel: for the monopolist find the TR When the 3rd output is produced?
from the attached graph: what would be the profit maximizing output for the monopolist firm?
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When a monopolist switches from charging a singleprice to practicing perfect price discrimination, itreducesa. the quantity produced.b. the firm’s profit.c. consumer surplus.d. total surplus.
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When a monopolist switches from charging a single price to practicing perfect price discrimination,it reducesa.the quantity producedb.the firm's profitc.consumer surplusd.total surplus
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