In the diagram below, when the competitive market is taken over by the monopolist, the monopolist is able to enjoy producer surplus in terms of the area(s)_ Dalam rajah di bawah, apabila pasaran kompetitif diambil alih oleh monopoli, monopoli dapat menikmati lebihan pengeluar sebanyak kawasan Price / Harga (P) E SS = MC* C H F ES B A G DD = P MRM QM Qc D a. BCEH minus GFH / BCEH tolak GFH C. Lin b. BCEF minus GFH / BCEF tolak GFH BCEH Output (Q) d. BCEF
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- what is monopolistic competition? (50 WORDS)There are four main forms of market, namely pure competitive market, monopolistic competition market, and marketoligopoly, and the monopoly market. These four forms of market can be viewed from the seller's point of view or in terms ofbuyer. Explain the difference between Pure Competition and Pure Monopoly Market!A monopoly firm creates a deadweight loss because the monopoly Firma monopoli mengakibatkan kerugian luput kerana monopoli tersebut a. sets a price that is too low menetapkan harga yang terlalu rendah b. produces output which is less than the efficient level mengeluarkan output yang kurang daripada output cekap c. does not maximize profits tidak memaksimakan keuntungan d. earns a normal profit
- Evaluate: “Society does not need laws outlawing monopolization and monopoly. Inevitably, monopoly causes its own self-destruction since its high profifit is the lure for other firms or entrepreneurs to develop substitute products.”Question 10 On the basis of the information below for a single-price monopolist, what would be the profit maximizing output? Quantity 0 1 2 3 4 5 (A) 5 units (B) 4 units C) 3 units (D) 2 units Price $650 $575 $500 $425 $350 $275 Total Cost $400 $525 $705 $980 $1330 $1830Monopoly - End of Chapter Problem Download Records decides to release an album by the group Mary and the Little Lamb. It produces the album with no fixed cost, but the total cost of creating a digital album and paying Mary her royalty is $6 per album. Download Records can act as a single-price monopolist. Its marketing division finds that the demand schedule for the album is as shown in the accompanying table. a. Calculate the total revenue and marginal revenue per album for P = $16, $14, and $12. TRP $16: $ TRP $14: $ Price of album $22 20 18 16 14 12 10 8 Quantity of albums demanded 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000
- PRICE 1 2 10. Study Questions and Problems #10 The following graph represents a natural monopolist. Suppose that regulators have set the fair-return price at $3. Use the black point (cross symbol) to indicate the equilibrium under unregulated monopoly. Then use the grey point (star symbol) to indicate the equilibrium for the monopoly regulated by marginal cost pricing. Finally, use the purple point (diamond symbol) to indicate the equilibrium for the monopoly regulated by fair-return pricing. 5 • + MC Pricing Monopoly Pricing LRAC Fair-Return Pricing LRMC MR D 0 0 1 2 3 4 5 6 7 8 QUANTITY Use the graph to complete the following table. Pricing Price (Dollars) Quantity (Units) Stays in Business? Unregulated monopoly $ Marginal cost pricing $ Under which of the following pricing regulations will the monopolist stay in business? Check all that apply. Fair-return pricing Marginal cost pricing Monopoly pricingQuestion 1Please explain briefly the key characteristics of the following marketstructuresa) Bertrand competitionc) monopolistic competitiond) natural monopolyQ21 Answer the question on the basis of the provided demand and cost data for Aphria, a monopolist producing marijuana. Demand Data for Marijuana Cost Data for Marijuana Price Quantity Demanded Output Total Cost $6.25 3 3 $5.00 6.00 4 4 6.00 5.75 5 5 6.50 5.25 6 6 7.50 4.50 7 7 9.00 4.00 8 8 11.00 3.50 9 9 14.00 The profit-maximizing level of output for Aphria will be Multiple Choice 4 units. 7 units. 5 units. $10. 6 units.
- The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You needto find the missing values using TR-TC & MR-MC approaches to analyze its cost of productionand profit maximizing point.Output Price Total Cost Total Revenue MC MR0 Rs.24 Rs.101 21 142 18 203 15 284 12 385 9 50a. Find the missing values of Total Revenue columnb. Find the output level that maximizes the firm's profit, using TR-TC approachc. What price should the firm set to achieve maximum profit?d. Complete the final two columns to verify that the same conclusions are reached using theMR = MC rule.e. Compare both the results and comment on the business and its positionRaphael's hair salon is a monopoly in a small town and is currently earning an economic profit. a) Draw a correctly labeled graph for Raphael and include the curves that are necessary to identify the following. 1) The profit-maximizing price and quantity of haircuts, labeled Pm and Qm 2) The area representing economic profits, shaded completely b) Does Raphael's hair salon produce the allocatively efficient quantity? Explain. c) Assume that Raphael signs a new lease with an increase in rent, a fixed cost. Will the price of haircuts provided by Raphael increase, decrease, or stay the same in the short run? Explain. d) Assume that new hair salons enter the market and that the market becomes monopolistically competitive. Answer each of the following. 1) The entry of new hair salons creates close substitutes for each individual salon's services. As a result, will the demand for Raphael’s hair salon become more elastic or become less elastic, or will there be no change in the elasticity? 2)…The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that supplies Hi-tech components. Use the graph to answer the questions that follow. i. State the elasticity of the monopoly firm demand curve. ii. Considering the figure, examine the benefits of the characteristics of themonopoly demand curve to ABC Inc. Ltd. iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning aneconomic profit. Do you think ABC Inc. Ltd firm will earn profit in the longrun? Explain your answer. Assume all factors constant.iv. Examine the effects of ABC Inc. Ltd on consumers.