Principles of Economics (MindTap Course List)
8th Edition
ISBN: 9781305585126
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 15, Problem 6CQQ
To determine
The causes of deadweight loss .
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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 15 Solutions
Principles of Economics (MindTap Course List)
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - 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?arrow_forwardmonopolist’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?arrow_forwardMonopoly 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 $100arrow_forward
- 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 degreearrow_forwardMonopoly 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 pointsarrow_forwardMonopoly 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 $120arrow_forward
- 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?arrow_forwardWhen 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.arrow_forwardWhen 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 surplusarrow_forward
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