a. Is this firm a perfectly competitive firm or a monopoly? How can you tell? b. In the current situation, how much output will you produce and what price will you charge? Are you currently making any profit? c. Assume the price of the product falls to $5. Will you be making a profit or loss? If you are taking a loss, will you still produce? If so, why? If not, why not? d. Assume the price falls to $1.50. Will you be making a profit or loss? If you are taking a loss, will you still produce? If so, why? If not, why not? e. Is this the short run or the long run? How can you tell? If this is the short run, what do you expect to happen in this industry in the long run?

a. Is this firm a perfectly competitive firm or a monopoly? How can you tell? b. In the current situation, how much output will you produce and what price will you charge? Are you currently making any profit? c. Assume the price of the product falls to $5. Will you be making a profit or loss? If you are taking a loss, will you still produce? If so, why? If not, why not? d. Assume the price falls to $1.50. Will you be making a profit or loss? If you are taking a loss, will you still produce? If so, why? If not, why not? e. Is this the short run or the long run? How can you tell? If this is the short run, what do you expect to happen in this industry in the long run?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 3PA

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How do you calculate the revenue of a firm that produces only one good?