Practice question 3: Answer the question on the basis of the provided demand and cost data for a pure monopolist. 1. The profit-maximizing level of output will be 2. The profit-maximizing monopolist will realize a $ (profit/loss/break-even) equals to Demand Data Price $5.50 5.00 4.50 3.85 3.35 2.90 2.50 Quantity Demanded 3 4 5 6 7 8 9 Cost Data Output Total Cost 3 4 5 6 7 8 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00

Practice question 3: Answer the question on the basis of the provided demand and cost data for a pure monopolist. 1. The profit-maximizing level of output will be 2. The profit-maximizing monopolist will realize a $ (profit/loss/break-even) equals to Demand Data Price $5.50 5.00 4.50 3.85 3.35 2.90 2.50 Quantity Demanded 3 4 5 6 7 8 9 Cost Data Output Total Cost 3 4 5 6 7 8 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter23: Monopoly

Section: Chapter Questions

Problem 1QP

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Give typing answer with explanation and conclusion The inefficiency (dead-weight loss) of a monopoly (as compared to perfect competition) indicates the amount by which Group of answer choices price exceeds marginal revenue at a particular output level. consumer welfare is increased by the monopolist. price exceeds marginal cost at a particular output level. marginal benefits exceed marginal cost for those units not produced by the monopolist but that would otherwise be produced in a competitive market. marginal costs exceed marginal benefits for those units not produced by the monopolist but that would otherwise be produced in a competitive market.
Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of S60 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. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c. What is the firm's average total cost?
a) The demand curve faced by monopolist and his total cost functions are given below; Demand function; Q = 3000 – 60P Total Cost function; TC = 100 +5Q+1/480Q2 a) Find profit Maximizing price and output level of this Monopoly firmb) Measure the firm profit margin at profit maximize output level. c) “Compare to perfect competitive producer, the monopolist is misused scare resources” Explain using suitable graphs
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Q18 Marginal revenue is less than price for a single-price monopolist because it... a. Charges a price higher than the unit production cost. b. Must worry about how its price setting will lead to entry by other firms. c. Must lower its price for all units if it wants to sell more of the product. d. Does not affect the selling price through its output decisions. e. Has achieved economies of scale.
The figure below shows the cost (MC, ATC, AVC) and demand curves (D, MR) for a monopolist producing solid silver walking sticks.Based on the figure above, which of the following statements about the monopolist is true? Question 3Answer a. The monopolist is suffering an economic loss and not covering its variable costs. b. The monopolist is suffering an economic loss but covering its variable costs. c. The monopolist is earning a positive profit. d. The monopolist is breaking even.