ECONOMICS W/CONNECTPLUS PKG>IC<
20th Edition
ISBN: 9781259685897
Author: McConnell
Publisher: MCG CUSTOM
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Question
Chapter 19, Problem 9DQ
To determine
Industrial regulation on monopoly .
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Table 15-20
A monopolist faces the following demand curve:
Quantity Price
0
$30
1
$27
2
3
+
$24
$21
$18
5
$15
6
7
8
0
$12
$9
$6
$3
10
$0
Refer to Table 15-20. If a monopolist faces a constant marginal cost of $5, how much output should the firm
produce in order to maximize profit?
O2 units
3 units
4 units
5 units
Suppose that demand is Qlp)-2000-4p. Consider the marginal revenue curve of a monopolist who operates in this market.
Assume that it is plotted on a two-axis graph in which the horizontal axis measures quantities and the vertical axis measures
marginal revenue. What is the horizontal intercept of the marginal revenue curve?
O 500
O 750
O 1000
O 2000
O 250
You manage one of three firms in a market. You expect that one of the other firms will produce 20
units of output and the other firm will produce 10 units of output. Your monopoly quantity is 40.
How much output should your firm produce given your expectations regarding the output levels of
the other two firms?
O 25
O 15
O 30
O 40
Chapter 19 Solutions
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