A natural monopoly occurs when A. one firm can supply the entire market at a lower price per unit than two or more firms can. B. a few firms collude to act as a single firm. C. one firm owns all the vital resources needed to produce a particular good. D. one firm captures all the consumer surplus.
Q: Microsoft Windows 8 Versions and U.S. Prices Version Price Full from Microsoft 249.99 Upgrade from…
A: As we know that Microsoft Window is a popular operating system developed by Microsoft corporation.…
Q: C Monopoly Tanya has the following demand curve for selling taffy. Assume that Tanya has…
A: Monopoly refers to a market in which there is only a single seller of a commodity. The seller has…
Q: (a) State and explain four (4) conditions that must be in place for a monopoly to exist. (b) How…
A: Microeconomics studies the economic behavior of individual units such as a firm, a market, a…
Q: 1. Which of the following is not possible for a monopolist in the short-run? a. An economic profit…
A: Monopolist is characterized by a single firm selling a good and there are barriers to entry for new…
Q: wasepose that a monopolist is selling 50.000 units at a price of $1.000. They are paying $20 million…
A: Monopoly exist in short run when they are able to cover variable cost in short run . But in long run…
Q: There is a monopolist, Concrete Mex, in the concrete market in Mexico. The demand function is Qd=…
A:
Q: Match the corresponding word/s to complete the statement above. If the marginal cost equals…
A: A cost curve refers to a graph of the costs of production as a function of the total quantity…
Q: 1. The market demand for monopoly firm is P=300-4Q and the total cost is C(Q)=50Q+Q²+100. a) How…
A: Demand function, P = 300 - 4Q To find the profit-maximizing output we are required to equate MR =…
Q: 1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the…
A: A monopolistic market is one that meets all of the requirements for a pure monopoly. A monopoly…
Q: a. Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of…
A: a. Perfect competition refers to the situation where there are many buyers and sellers exist in the…
Q: rms (A and B) sell identical products. They move at the same time. Demand in the market is P = 400 -…
A:
Q: in monopoly, market power permits you to price above MC. What limits how high a price you can set?…
A: In monopolistic market there is a single firm selling unique good.
Q: There is a market with monopoly conditions with Q= 100-P (demand) and MC-AC-20. The monopoly price…
A: Monopoly is the form of market where only single seller sale the products to large numbers of…
Q: 1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the…
A: Under monopoly, there is a single firm which produces a unique product. A monopolist has no other…
Q: Alice is the monopoly producer for DrinkMe"M, a magical potion shrink in size. Market demand for…
A: Working notes: 1. Monopoly profit is maximized when MR = MC, 2. Competitive profit is maximized when…
Q: There is a monopolist, Concrete Mex, in the concrete market in Mexico. The demand function is Qd=…
A: Given, Qd= 100-50p c = 0.4
Q: (a) If you are the owner of the only bookstore in a small town, do you have a monopoly? Explain. (b)…
A: Monopoly is one of the market structures out of total 4 market structures. Answer and explanation…
Q: Review the graph at right for a monopoly market (enter all of your responses as whole numbers). How…
A: Monopoly is a single firm in the market producing unique good.
Q: Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public…
A: The monopoly created by the government is the scenario in which the government allows only one…
Q: Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output…
A: The perfect competition market consists of a large number of sellers who are price takers as the…
Q: Pennybags is the only seller of board gam Atlant ity, New Jersey. The inverse demand curve for board…
A: The perfect price discrimination leads to the competitive output And consumer surplus is zero.
Q: 1Price 30 MC 23 20 15 ATC D 9 12 Quantity 15 \MR The graph above describes the market for a…
A: A deadweight loss is a social value caused by market inefficiencies, or once offer and demand square…
Q: Question 2 Alice is the monopoly producer for DrinkMeM, a magical potion that makes you shrink in…
A:
Q: For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in the postal business…
A: Given information Minimum AC=£2 at Q=100 million deliveriesMinimum MC= £1 at Q=75 million deliveries…
Q: How the price of the frim is determined from industry price?
A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…
Q: A firm producing large-scale machine products operates as a monopoly in its market and has erected…
A: When there is only one producer and many consumers, a monopoly exists. Monopoly is characterized by…
Q: 1. Consider the market for Pop Rocks depicted in the diagram below: Price (S/package) $1.00 0.10- MC…
A: Consumer surplus refers to the area above the price and below the demand curve while supply curve…
Q: Hot Air Balloon Rides is a single-price monopoly. Quantity (rides Price Total cost Columns 1 and 2…
A: A firm maximizes profit by producing output at a level where Marginal Cost is equal to Marginal…
Q: Review the graph at right for a monopoly market (enter all of your responses as whole numbers).…
A: Monopoly firm maximizes profit at the intersection point of MR and MC. The consumer surplus is the…
Q: 10.00 9.00 MC 8.00 ATC 7.00 6.00 5.00 4.00 3.00 8 2.00 1.00 MR 10 20 30 40 50 Quantity (hamburgers…
A: a) i) Since Ron has the only restaurant in town, he is acting as a monopolist. Being a monopolist,…
Q: The perfectly competitive firm exhibits resource allocative efficiency (P = MC), but the…
A: A firm produces at the output level where MC equals MR in order to maximize profit.
Q: Henry Potter owns the only well in town that produces clean drinking water. He faces the following…
A: Following information is given: Demand: P = 70 – QMarginal Revenue: MR = 70 – 2QMarginal Cost: MC =…
Q: For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in the postal business…
A: The Royal Mail’s minimum average cost is £2 at 100 million deliveries The minimum marginal cost is…
Q: Review the graph at right for a monopoly market (enter all of your responses as whole numbers).…
A: Since you have posted multiple subparts as per the guidelines we can solve only first 3 subparts
Q: Does a monopolistically competitive firm have an incentive to produce at the level of output that…
A: The basic characteristics of Monopolistic competition are – Differentiated products, many firms, and…
Q: 9. Draw a linear demand curve, linear MC and MR for a monopolist. (a) Show graphically the optimal…
A: The monopoly is the market structure with sole supplier and no rival in the market. It enjoys high…
Q: Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output…
A: given Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price,…
Q: d. What is one firm's economic profit in this market? e. Consider a different market structure,…
A: Given Market demand function Qd=200-p .....(1) Total cost function TC= 5q2 ....(2)
Q: Review the graph at right. Monopoly 100- What is the unregulated monopoly price? S (enter your…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: The accompanying diagram shows the demand , marginal revenue , and marginal cost of a monopolist .…
A: (a) and (b) The condition for profit maximization output and price is: MR=MC In the case of…
Q: i. If government regulates efficient pricing, are profits positive, negative or zero? ii. Is this a…
A: Efficient pricing refers to allocative efficiency. Allocative efficiency is when P (Price) = MC…
Q: The accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this…
A: Hi, thank you for the question. As per our Honor Code, we can attempt only first three parts of the…
Q: Winter has a monopoly on the production of walnuts. The demand curve and marginal cost are given by:…
A: Given information P=360-4Q MC=4Q Welfare loss for society is the summation of consumer surplus loss…
Q: Question 4: Show a Monopoly earning super normal profit and explain what are the loss to the…
A: Monopolies can maintain supernormal profits in the long run, Profit maximization is achieved at a…
Q: For many decades, the Royal Mail had a legal monopoly in the U.K. Companies in the postal business…
A: Given information Minimum AC=£2 at Q=100 million deliveriesMinimum MC= £1 at Q=75 million deliveries…
Step by step
Solved in 2 steps
- Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and produce 6 units in the long run. C. Comcast should shut down in the short run and in the long run. O D. Comcast should produce 6 units in the short run and in the long run. O E. None of the above. 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost - 21 24 27 30 33 39 36 Suppose the local government imposes a $73 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $45.) Suppose that the flat per-month tax is replaced with a tax on the firm of $12 per cable subscriber. (Assume that Comcast will sell…The following figure shows the demand curve for Good X in a perfectly competitive market. Later, the government grants one of the firms the exclusive right to manufacture and sell Good X. MR represents the marginal revenue curve of the firm when it operates as a monopoly. The marginal cost of producing Good X is constant at $5. Price/Cost (S) 4 Demand 3 MR 2 1 10 11 12 13 14 15 16 17 18 Quantity (1,000 units) a) What is the quantity supplied when the market is perfectly competitive? What happens to the quantity supplied once the market changes to a monopoly? b) What is the market price when the market is perfectly competitive? What is the market price when the market changes to a monopoly? c) Compare the consumer surplus when the market is perfectly competitive and when the market is a monopoly. Is there any producer surplus or deadweight loss in either case? If yes, then how much?hey how are you a)Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. b)Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. c)Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.
- The graph illustrates an industry in which many firms operating in perfect competition are taken over by one firm that operates as a single-price monopoly. Draw the following shapes: 1) the consumer surplus arising from monopoly. Label it CS. 2) the deadweight loss arising from monopoly. Label it DWL 3) the loss of consumer surplus that is a gain to the monopoly as producer surplus. Label it Monopoly's gain. Indicate whether each of the following statements is true or false. At the competitive equilibrium, marginal social benefit equals marginal social cost. At the competitive equilibrium, the sum of consumer surplus and producer surplus is maximized. At the long-run competitive equilibrium, firms produce at the lowest possible long-run average cost. 30- 25- 20 15- 10- 5- Price and cost (dollars per haircut) 0+ 0.0 MR 1.0 2.0 3.0 4.0 Quantity (thousands of haircuts) MSC 5.0When a competitive market comes under the control of a monopoly, the price changes from: 1. D to E. 2. C to B. 3. C to A. 4. B to A. 5. A to C.↑ Price Price Panel B NECK D Quantity Panel A Price D Panel C D Use the figure above. Which of the following statements is correct? All the answers are correct. Price Panel B represents the typical demand curve for a perfectly competitive firm. Panel A represents the typical demand curve for a monopoly. Panel D. ⒸPanel A represents the typical demand curve for a perfectly competitive market. D
- Question 1: Revenue and costs MC $34 ATC 29 50 27 21 13 Demand MR 600 800 940 1160 Quantity Assume this is a monopoly. What is the market equilibrium output in this market? Question 2: Revenue and costs MC $34 ATC 29.50 27 21 13 Demand MR 600 800 940 1160 Quantity Assume the above graph is a monopoly. What is the deadweight loss if this firm maximizes profits? If there is no deadweight loss, put 0 in for your answer. Assume linearity.What would the problem be if the government forced a natural monopoly to set a price equal to its marginal cost? a. the firm will make excessive profits b. consumers buy less of the good than is efficient c. consumers buy more of the good than is efficient d. the firm will make losses and exit the marketCalculate the price in Country U using the following information in a Monopoly market when there is a possibility for resale: The elasticity of demand in Country J is -5.5 and Country U is -2.2 Marginal cost is $12. a. $22 b. $22.5 c. -$22.5 d. $12
- Which of the following is a characteristic shared by a perfectly competitive firm and a monopoly? Select one: a. Each must lower its price to sell more output. b. Each sets a price for its product that will maximise its revenue. c. Each maximises profits by producing a quantity for which marginal revenue equals marginal cost. d. Each maximises profits by producing a quantity for which price equals marginal cost. e. Each minimises average total cost by producing a quantity for which price equal average revenueUse the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 10 90 15 80 20 70 25 60 30 50 35 40 900 1200 1400 1500 1500 1400 675 825 1025 1250 1500 1850 What is marginal revenue when quantity is 25? What is marginal cost when quantity is 15? If this firm is a monopoly, at what quantity will profit be maximized? If this is a perfectly competitive market, which quantity will be produced? $ 20 $ 90 Incorrect quantity: 6 Incorrect quantity: 8 IncorrectIn which of the following situations would Maria's Doughnut Shop have the MOST market power? Select one: a. The closest doughnut shop or bakery is 25 miles away from Maria's shop. b. There are two rival doughnut shops within three miles but no other bakeries. c. The closest doughnut shop is 10 miles away, but there is a bakery with breakfast pastries two miles away. d. Within three miles, there are five other doughnut shops and three bakeries that sell breakfast pastries.