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D2L 9.1 How Monopolies Form: Ba × Tutor - Solution Page 1 of 1 | H X Lesson 9.1 How Monopolies F EC-321-001 Test #3 JSU (Dr. B b Answered: esc Question 10 of ← → CO learn.hawkeslearning.com/Portal/Lesson/lesson_certify#! Question 10 of 11, Step 1 of 1 7/11 Correct + 0 A natural monopoly occurs when the quantity demanded is less than the minimum quantity at the bottom of the long-run average cost curve. The bottom of long-run average cost curve corresponds to the outputs with lowest average cost. To identify the average cost of each output quantity, divide total cost by the appropriate quantity. Total cost ($) Average cost ($) Quantity (units) 1,000 $5,500 $5.50 1,250 $6,250 $5.00 1,500 $6,750 $4.50 1,750 $7,875 $4.50 2,000 $12,000 $6.00 2,250 $15,750 $7.00 According to the obtained values, the bottom of long-run average cost curve corresponds to an average cost of $4.50, which appears at the minimum output of 1,500 units. Equilibrium is the only price where quantity demanded is equal to quantity supplied. Consequently, the maximum demand at which the market will be at the equilibrium and the firm will stay a natural monopoly is 1,250 units. Correct Answer: 1,250 units Return to Certify 2024 Hawkes Learning ㄖㄨ

D2L 9.1 How Monopolies Form: Ba × Tutor - Solution Page 1 of 1 | H X Lesson 9.1 How Monopolies F EC-321-001 Test #3 JSU (Dr. B b Answered: esc Question 10 of ← → CO learn.hawkeslearning.com/Portal/Lesson/lesson_certify#! Question 10 of 11, Step 1 of 1 7/11 Correct + 0 A natural monopoly occurs when the quantity demanded is less than the minimum quantity at the bottom of the long-run average cost curve. The bottom of long-run average cost curve corresponds to the outputs with lowest average cost. To identify the average cost of each output quantity, divide total cost by the appropriate quantity. Total cost ($) Average cost ($) Quantity (units) 1,000 $5,500 $5.50 1,250 $6,250 $5.00 1,500 $6,750 $4.50 1,750 $7,875 $4.50 2,000 $12,000 $6.00 2,250 $15,750 $7.00 According to the obtained values, the bottom of long-run average cost curve corresponds to an average cost of $4.50, which appears at the minimum output of 1,500 units. Equilibrium is the only price where quantity demanded is equal to quantity supplied. Consequently, the maximum demand at which the market will be at the equilibrium and the firm will stay a natural monopoly is 1,250 units. Correct Answer: 1,250 units Return to Certify 2024 Hawkes Learning ㄖㄨ

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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D2L 9.1 How Monopolies Form: Ba × Tutor - Solution Page 1 of 1 | H X Lesson 9.1 How Monopolies F EC-321-001 Test #3 JSU (Dr. B b Answered: esc Question 10 of ← → CO learn.hawkeslearning.com/Portal/Lesson/lesson_certify#! Question 10 of 11, Step 1 of 1 7/11 Correct + 0 A natural monopoly occurs when the quantity demanded is less than the minimum quantity at the bottom of the long-run average cost curve. The bottom of long-run average cost curve corresponds to the outputs with lowest average cost. To identify the average cost of each output quantity, divide total cost by the appropriate quantity. Total cost ($) Average cost ($) Quantity (units) 1,000 $5,500 $5.50 1,250 $6,250 $5.00 1,500 $6,750 $4.50 1,750 $7,875 $4.50 2,000 $12,000 $6.00 2,250 $15,750 $7.00 According to the obtained values, the bottom of long-run average cost curve corresponds to an average cost of $4.50, which appears at the minimum output of 1,500 units. Equilibrium is the only price where quantity demanded is equal to quantity supplied. Consequently, the maximum demand at which the market will be at the equilibrium and the firm will stay a natural monopoly is 1,250 units. Correct Answer: 1,250 units Return to Certify 2024 Hawkes Learning ㄖㄨ
Transcribed Image Text:D2L 9.1 How Monopolies Form: Ba × Tutor - Solution Page 1 of 1 | H X Lesson 9.1 How Monopolies F EC-321-001 Test #3 JSU (Dr. B b Answered: esc Question 10 of ← → CO learn.hawkeslearning.com/Portal/Lesson/lesson_certify#! Question 10 of 11, Step 1 of 1 7/11 Correct + 0 A natural monopoly occurs when the quantity demanded is less than the minimum quantity at the bottom of the long-run average cost curve. The bottom of long-run average cost curve corresponds to the outputs with lowest average cost. To identify the average cost of each output quantity, divide total cost by the appropriate quantity. Total cost ($) Average cost ($) Quantity (units) 1,000 $5,500 $5.50 1,250 $6,250 $5.00 1,500 $6,750 $4.50 1,750 $7,875 $4.50 2,000 $12,000 $6.00 2,250 $15,750 $7.00 According to the obtained values, the bottom of long-run average cost curve corresponds to an average cost of $4.50, which appears at the minimum output of 1,500 units. Equilibrium is the only price where quantity demanded is equal to quantity supplied. Consequently, the maximum demand at which the market will be at the equilibrium and the firm will stay a natural monopoly is 1,250 units. Correct Answer: 1,250 units Return to Certify 2024 Hawkes Learning ㄖㄨ
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