a. Under monopoly pricing, are profits positive, negative, or zero? (Click to select) b. If government regulates average total cost pricing (P = ATC), are profits positive, negative, or zero? (Click to select) c. If government regulates efficient pricing, are profits positive, negative, or zero? (Click to select) d. Is this a natural monopoly? (Click to select)

a. Under monopoly pricing, are profits positive, negative, or zero? (Click to select) b. If government regulates average total cost pricing (P = ATC), are profits positive, negative, or zero? (Click to select) c. If government regulates efficient pricing, are profits positive, negative, or zero? (Click to select) d. Is this a natural monopoly? (Click to select)

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 12PA

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What is cost-plus regulation?
Andrew is a monopolist whose production process exhibits economies of scale. (a) Draw a diagram illustrating Andrew's profit-maximizing price and quantity. On your diagram, identify the deadweight loss of monopoly. (b) The government is concerned that Andrew is charging too high a price and plans to regulate the price. Hustrate the price regulation you would recommend on your diagram and explain your recommendation. (c) What is the maximum amount of money Andrew would be willing to spend lob- bying the government to avoid the price regulation you identified in (b)? 2.
90 80 MC 65 55 52 50 ATC D MR 10 20 35 45 50 Quantity of Output (Units) Refer to the graph above for a pure monopolist: The total profit (loss) for this monopolist is: ($525) $100 $525 $175 Dollars ($)
Please refer to th graph attached. The graph shows the Demand, Marginal Revenue, Average Total Cost, Average variable Costs and Marginal Cost curves for a monopolist. (a) What is the profit maximizing/ loss minimizing quantity of output and what is the maximum price the monopolist can charge? (b) Is this monopolist making economic profit or economic loss? How do you know? Explain please. (c) Calculate the firms profit or loss and show the economic profit/loss on the graph.
Figure: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost A) $5. OB) $13. C) $14. $35 D) $20. 29 26 రారాళి 8 5 0 (Figure: A Profit-Maximizing Monopoly Firm) Look at the figure A Profit-Maximizing Monopoly Firm. This firm's profit per unit is: MC ATC MR 160 220 250 300 Quantity of output (per week)
Refer to the graph shown of a profit-maximizing monopolist: $100 $90 MC $80 $70 $60 $50 Price, cost, revenue D 7000 14000 21000 12000 Question: What is the monopolist's economic profit(loss) at the profit-maximizing level of output? O-$280,000 O $0 $140,000 $840,000 O -$140,000 0 /AC MR
Figure 94 Monopolist (dollars) 10 8 6 0 Quantity MC Refer to Figure 94. Suppose that the profit-maximizing/loss minimizing level of output is 40 units per day and the average fixed cost and average variable cost of producing this amount is $4 $7, respectively. (a) What is the total cost of producing 40 units per day? Show your work. (b) What is the total profit earned/loss incurred by producing 40 units per day? Show your work. (c) What price will the firm charge to maximize profit or minimize loss? (d) Should the firm shut down or continue to produce in the short run? Explain.
Multiple Choice pervey $10 for its product. $12 for its product $16 for its product. $8 for its product.
E3 Let’s assume a monopolist has the following inverse demand curve:p = 248 −3qand the following cost curve:T C = 8q + q^2(a) Calculate the marginal revenue and marginal cost for this firm.(b) Let’s assume the firm chose to operate in a perfectly competitive market. If that was true,what is the equilibrium price and quantity?(c) Graph the demand curve, marginal revenue, and marginal cost for the perfectly competitivemarket. Show the optimal quantity and price on the graph.(d) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.(e) Now, let’s assume the firm chose to operate as a monopolist. If that was true, what is theequilibrium price and quantity?(f) Graph the demand curve, marginal revenue, and marginal cost for the monopolist market.Show the optimal quantity and price on the graph.(g) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.
Price 765432 17 16 15 14 13 12 11 10 8 7 6 5 327043 1 The accompanying graph depicts the demand and marginal revenue (MR) curves in a market | served by a monopolist. The monopolist faces a constant marginal cost of $4. MR Demand 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity What quantity will the monopolist produce to maximize its profits? Question 14 options: 12 6 8
Question 13 The table below presents the demand schedule and marginal costs facing a monopolist producer. Copy and paste the table into the answer area. Then complete all questions. a. Fill in the total revenue and marginal revenue columns. b. What is the profit-maximizing level of output? ( c. What price will the monopolist charge for the quantity in part b? ( Price ($) 12 11 10 9 8 7 6 Quantity 0 1 2 3 4 5 6 7 8 9 10 For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac). 5 4 3 2 Total Revenue ($) Marginal Revenue ($) Marginal Cost (5) 3 3 3 3 3 3 3 3 3 3
Assume that we have only one firm producing tennis balls. See the diagram below showing the market for tennis balls and find the: Price($) 115 18 11 19 0 20 20 40 40 MC ATC MR D Quantity Use the Graph below to answer the questions given below i. the quantity of output maximizing the profit the price monopolist is charging, ii. value of the average revenue at the profit maximising level of production, iii. value of the marginal cost at the profit maximising level of production, iv. value of marginal revenue at the profit maximising level of production, V. vi. value of the average total cost What is the value of total revenue, total cost and total profit at the profit maximizing quantity? vii. What would be the efficient level of output and price if the market was perfectly competitive?