A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference?
Q: A monopolist can sell the same product to different consumers at different prices.
A: Monopoly generally occurs when there is only one supplier of a particular commodity in the market.…
Q: Explain why a monopolist produces a lower level of output than a competitive industry.
A: Monopoly refers to the market structure which consists of only a single seller of the product who…
Q: Suppose, in the question above, this drug has a patent, which will provide a significant barrier to…
A: Monopoly is a market condition where there is a single seller. It sells a unique commodity in the…
Q: Which of the following statements applies to a monopolist but not to a perfectly competitive firm at…
A: Profit maximization occurs at the point where the marginal revenue and marginal cost are equal.
Q: monopolist, as opposed to a company in a perfectly competitive market:
A: Perfect competition market ;- where large numbers of sellers and buyers exist and exchange…
Q: If the price is less than actual total cost, does the monopolist make a profit, lose or break-even?
A: Monopoly is the form of market structure in which a single firm sells a commodity for which there…
Q: If the price is greater than actual total cost, does the monopolist make a profit, loss, or…
A: Answer to the question is as follows :
Q: Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at…
A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…
Q: How will a monopolist respond to a rise in fixed costs?
A: A monopoly is when a market is experiencing a situation where a single seller offers a specific…
Q: A major difference between a monopolist charging only one price and a perfectly competitive firm is…
A: When talking about forms of market z monopoly market is completely different from perfectly…
Q: The marginal revenue curve for a monopolist O will always have one-half the slope of the demand…
A: Monopolist is the single firm in the market. The industry and firm demand curves are same in the…
Q: Positive Economic Profits are A long-run operating condition necessary for a monopolist Profits…
A: Positive economic profits would result in revenue earned on the units sold over its costs. The…
Q: Select one or two examples of an industry characterized by monopoly and discuss how each example…
A: A monopoly is a market structure characterized by the existence of a single firm as the producing…
Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s)…
A: Perfect competition happens when all companies sell the same things, market share has no influence…
Q: How does a monopolist decide its production amount and pricing strategy? Explain. Use of appropriate…
A: Monopoly is a market condition where there is a single seller. It sells a unique commodity in the…
Q: Describe how a monopolist gains from price discrimination.
A: Monopoly: - monopoly market structure is the structure in which there is only one seller of any good…
Q: Why is marginal revenue below average revenue for a monopolist?
A: In monopoly markets there is a price effect and output effect..
Q: Monopoly firms are price __________
A: Out of the four broad types of market structures, one of the Market structure is a monopoly. A…
Q: Draw the demand, marginal-revenue, average total-cost, and marginal-cost curves for a monopolist.…
A: A monopoly is an imperfect market structure in which a producer or a firm is the sole supplier of…
Q: The following table gives total revenue and cost for a monopolist: Quantity Price Total Revenue…
A: Perfect competition is the market structure that is characterized by a large number of buyers and…
Q: Use the data on the chart for a monopolist. At its profit-maximizing output, this firm's price will…
A: We know that the monopolist profit maximization output condition is marginal revenue is equal to…
Q: Economic theory predicts a monopolist will discontinue production in the short run if: Multiple…
A: a firm in short run choose to discontinue the production only if it is not able to cover its…
Q: Which of the following is true of a monopolist firm, but NOT of a monopolistically competitive firm?…
A: Monopolistic competition describes an industry in which a large number of enterprises compete for…
Q: Which of the following is a common practice of single-price monopolists? * two-part tariffs advance…
A: In case of a Monopoly, there is a single seller who controls the entire market. The firm is a price…
Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s)…
A: Perfectly competitive firm is a price taker and monopolist is a price maker.
Q: When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is…
A: The difference between perfectly competitive firm and the monopoly firm is the difference in their…
Q: A monopolist has demand, marginal revenue, total cost, and marginal cost curves given by: Q demanded…
A: profit maximization is the short run or long run process by which a firm may determine the price,…
Q: Now suppose that the monopolist chooses q to maximise its profit. The number of units that the…
A: Given information: Monopoly faces following demand q = 3000 - 120p and Monopoly has following cost…
Q: When a single-price monopolist maximizes profits, price is greater than marginal cost. In other…
A: Monopoly expresses a market where a sole seller is privileged to satisfy the needs of the entire…
Q: The marginal revenue for a perfectly competitive firm is equal to the market price. Why is this not…
A: In a perfectly competitive market, there are a large number of buyers and a large number of sellers,…
Q: What advantages do monopolies have for the economy? What disadvantages do monopolies have for…
A: Perfect competition is a type of market structure in which there are large number of buyers and…
Q: It is possible for a monopolist's to earn economic profits even in the long run due to: a. its…
A: Monopoly is a market arrangement in which there is only one vendor of a good with complete market…
Q: How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue…
A: Monopoly refers to the market structure where there is only one firm in the industry. There is a…
Q: What is the usual shape of a marginal revenue curve for a monopolist? Why? How can a monopolist…
A: A market is a place where the buyers and the sellers interact with each other and the exchange of…
A
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answerHow much is total surplus if the market is perfectly competitive?How much is total surplus if the market is controlled by a single price monopolist?Suppose the single price monopolist started charging all customers the maximum price they are willing to pay. How much additional surplus is created?A firm faces a market demand curve given by: P = 100 - Q. Assume that the firm has a total cost given by: TC = Q2 - 60Q + 1,000. What are the price quantity combination that maximizes profit? Calculate the following in case of Perfect Monopoly and Perfect Competition? compare your results? a. What output level should the firm produce to maximize profit? b. What is the profit maximization price (P) for this firm? c. What is the firm's profit? d. What is the Consumer Surplus?
- If the price is greater than Actual total cost, does the monopolistic firm makes a profit, loss, or break-even?Consider a monopolistically competitive firm that faces demand curve P=160-3Q and total cost curve TC=100+Q². If this firm is profit-maximizing, what is the value of the average total cost (ATC) evaluated at Q*? (note: I am not asking for total costs. It's the value you would mark on your graph when you plug Q* into the ATC curve).A single-price monopolist faces an inverse market demand curve given as P (Q) = 100 − Q. The firm's total cost curve is C (Q) = 100 + 40Q + 1Q2. a. What are the equilibrium price and quantity in this market? (Find the profit maximizing quantity and price) (Round your answer to two decimal places and use it in the following parts) b. What are the firm's economic profits and economic rents? (Round your answer to two decimal places) c. What is the deadweight loss of this monopoly? (Round your answer to two decimal places)
- Virat Cement is a monopolist in the cement industry. Its cost is C = 100 - 5Q + Q ^ 2 and demand is P = 55 -2Q. (MC is the supply function). A. What price should Virat Cement set to maximize profit? B. What output does the firm produce and determine its profits? C. What would output and price be if the firm acted like a perfect competitor and set MC = P?I know that profit maximization for both a competitive and monopolistic market is MC=MR, however MR=P is applicable only in a competitive market and this is a monopoly. How do I solve this?The inverse demand curve a monopoly faces is p=120-2Q. The firm's cost curve is C(Q) = 40 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is 28.50. (Round your answer to two decimal places.) The profit-maximizing price is $63.00. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $ 1584.50. (round your answer to two decimal places.) How does your answer change if C(Q)= 100+6Q? The increase in fixed cost OA. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases. B. causes the firm to increase both the price and quantity, and profit increases. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. D. has no effect on the equilibrium price and quantity, but profit will decrease.
- The inverse demand curve a monopoly faces is p= 110 -Q. The firm's cost curve is C(Q) = 30 + 5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 52.50. (Round your answer to two decimal places.) The profit-maximizing price is $ 57.50 . (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.) 13 MacBook esc 80 F1 F2 F3 F4 F5 F6 # $ % 1 3 4 Q W R tab T A caps lock FThe inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 62.5. (Round your answer to two decimal places.) The profit-maximizing price is $ 67.5. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.)Consider a monopolistic business. What sort of demand curve does a monopolist face in contrast to a corporation that is fully competitive? What effects does the monopolist demand curve have on how prices and quantities are set?