A firm is a natural monopoly if it exhibits _________as its output increases.a. increasing total revenueb. increasing marginal costc. decreasing marginal revenued. decreasing average total cost
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A firm is a natural
as its output increases.
a. increasing total revenue
b. increasing marginal cost
c. decreasing marginal revenue
d. decreasing
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- One difference between a competitive firm and a monopoly is that __________________. a. monopoly makes economic profits, but a competitive firm never makes economic profits b. a monopoly faces a downward sloping marginal revenue curve, whereas a competitive firm faces a horizontal marginal revenue curve c. the cost curves of a monopoly are always below those of a competitive firm d. a monopoly always has economies of scale, but a competitive firm always has diseconomies of scalePrice (Dollars per Garment) 7 D E 5 АС-МC Demand Marginal Revenue 20 Garments cleaned per year (millions) The long run average and marginal cost of dry-cleaning services is $5, as shown in the graph. Given the demand curve and the marginal revenue curve shown in the graph, which of the following is true? Select one: O . If the industry were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $7 per garment. Ob. If the industry were perfectly competitive, 10 million garments would be cleaned each year. If the market were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $5 per garment and monopoly economic profit would be zero. O d. If the industry were perfectly competitive then the long-run equilibrium price of dry-cleaning services would be $7 per garment.4. Draw a demand, marginal revenue and marginal cost curve for a monopoly firm. Be sure to label axes and curves. a. Identify efficient and equilibrium quantity exchanged. b. Identify monopoly price. c. Explain why I am not asking for a supply curve. 5. Explain what is the relationship between marginal cost and average total costs for a firm or industry exhibiting each of the following: a. Economies of scale. b. Constant returns to scale. c. Diseconomies of scale. 6. Assume that the economy is facing the zero lower bound. a. Explain how the Federal Reserve might engage in expansionary monetary policy and what that will do when the economy is facing the zero lower bound. b. Explain how expansionary fiscal policy might influence the economy when facing the zero lower bound. Please answer all questions
- How is the perceived demand curve for a monopolistically competitive film different from the perceived demand curve for a monopoly or a perfectly competitive film?10. Examine this information for a monopoly product. Price Quantity SR10.00 1000 8.00 2000 6.00 3000 4.00 4000 2.00 5000 .5 6000 a. Calculate total revenue. b. Calculate marginal revenue. c. What is the maximum output that the producer of this product would ever produce? d. Why would this firm never produce more than the output amount in part (c)? С.Exercise A.12. Explain the differences between the supply and demand curves of a firm in perfect competition and a monopoly.
- Figure 11.4 PRICE OR CONT PRICE OR COST X X O Firm B. Firm D. Firm A Firm A. O Firm C. QUANTITY Firm C QUANTITY PRICE OR COST Firm B PRICE OR CORT Which of the firms in Figure 11.4 is most likely a monopoly? QUANTI Firm D QUANTIT1- Consider the following graph of a firm in the industry to answer the following: ATC, IImits of r A. Is this firm working in a competitive market or monopoly? Explain. B. Is it working in short or long run? Explain. C. Does this firm achieve economic profits, or iosses, or breakeven? Expiain.Determine the profit maximization point of a firm in a graph showing the dynamics of the Production and Cost Function. Supoose you are given this data of a monopolist. The price of the product is 35 pesos. 1. Compute for the- total cost, Average variable cost, marginal cost, total revenue, marginal revenue.2. Graph the schedule and answer the following question. - did the firm able to maximize its profit? If yes identify at what level (Quantity/output) or highlight the profit maximization point in the graph. If no, cite the reason why the firm was not able to maximize profit. Elaborate you explanation through you analysis on the Dynamics of the cost and output.
- QUESTION 8 Which of the following is true for monopoly and perfect competition? 1 points A. The demand for the B. Economic profits can O C. Marginal revenue is horizontal at the O D. Profits are maximized by producing at the level of output where marginal revenue is equal to marginal cost individual firm's product be sustained is perfectly elastic. indefinitely over industry equilibrium time. price.A firm is a natural monopoly if it exhibits the following as its output increases:a.decreasing marginal revenue.b.increasing marginal cost.c.decreasing average revenue.d.decreasing average total cost.A firm is a natural monopoly if it exhibits the following as its output increases: a. decreasing marginal revenue. b.increasing marginal cost. c. decreasing average revenue. d. decreasing average total cost.
