MCQ question & only typed Answer Compared to a similar perfectly competitive industry, a single-price monopolySelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.a creates a deadweight loss and decreases economic profit.bCdproduces more output.creates a deadweight loss and decreases consumer surplus.is more efficient because there is no wasteful competition.

A single-price monopoly refers to the market condition where a single firm sells a specfiic good to…

Compared to a similar perfectly competitive industry, a single-price monopoly Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C d creates a deadweight loss and decreases economic profit. produces more output. creates a deadweight loss and decreases consumer surplus. is more efficient because there is no wasteful competition.

Compared to a similar perfectly competitive industry, a single-price monopoly Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C d creates a deadweight loss and decreases economic profit. produces more output. creates a deadweight loss and decreases consumer surplus. is more efficient because there is no wasteful competition.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 19SQ

See similar textbooks

Similar questions

When a perfectly competitive industry is taken over by a monopoly, some consumer surplus is transferred to the monopolist in the form of economic profit marginal cost deadweight loss
Specialty Cakes is a monopoly of birthday cakes in Tahoe village. Assume that it produces an output that maximizes profits with P>MC and P=ATC. Then, Group of answer choices it is shutting down. it is incurring negative economic profit. it is breaking even. it is earning positive economic profits.
In a perfectly competitive market, one of the following answers is correct with respect to the demand curve for a perfectly competitive firm. Which one? Group of answer choices The perceived demand curve is downward sloping. The perceived demand curve for a perfectly competitive firm and a monopolist look the same. When price increases, quantity demanded from the firm will also decrease. The demand curve is flat. Answer correct and explain within 40 mins will give you positive feedback.
A monopoly is operating at a quantity where average total cost is $70, marginal revenue is $50, and the price is $65. If the monopoly's ATC curve is U-shaped and is currently at its minimum level, then to maximize profits, this business should: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a raise quantity produced. b lower quantity produced. not change the quantity produced since it is already maximizing profits. d. shut down.
Paradise Cruises has a monopoly in renting luxury yachts for sailing in the Caribbean Sea. In summer its monthly inverse demand is Ps = 600 - 20g. In winter the inverse demand is Pw = 600 - Qw Paradise has a total of 250 yachts available for rental on a monthly basis. Which season is peak season? Why? What are the profit-maximizing prices in both seasons? Assume marginal cost is zero. Peak season is winter because demand is higher. The profit-maximizing peak-load price for the summer is Ps = 5 and the optimal peak-load price for the winter is Pw = (Enter your response rounded to two decimal places.)
Price and cost (dollars per hamburger) 5.00 4.50 4.00 MC 3.50 3.00 2.50 2.00 1.50 1.00 0.50 MR 10 20 30 40 50 Quantity (hamburgers per hour) Suppose the Busy Bee Cafe is the monopoly producer of hamburgers in Hugo, Oklahoma. The above figure represents the demand, marginal revenue, and marginal cost curves for this establishment. What price will the Busy Bee charge to maximize its profit? A. $1.00 for a hamburger OB. $3.00 for a hamburger OC. $5.00 for a hamburger OD. $2.00 for a hamburger O E. $4.00 for a hamburger
Perfect Competition and Monopoly Problems 1. Suppose the typical firm in a perfectly competitive industry has the following long-run total cost function: TC = 240Q – 6Q2 + 0.08Q*| What is the long-run price for product Q? 2. Stanley Smith has a soft drink concession monopoly at Fort Tippecanoe, Indiana, County Fair. He believes his total cost for supplying the drinks will be TC = 800 + 0.2Q + 0.0001Q? If the County Fair Board tells him he must charge $0.80 and demand for the drinks during the fair is given by the demand curve Q = 5000 – 2500P determine the following: (a) The number of drinks sold and Stanley's total profit at the fixed price of $0.80 per drink. (b) Stanley's profit-maximizing output, price, and profit if he were allowed to set his own price instead of having to charge $0.80.
A monopoly shuts down when never, because it can raise its prices as high as necessary to keep operating and maximize profits. the short run price is below its average variable costs. the average cost is less than price. the long run price is below its average variable costs.
For a monopoly firm, marginal revenue when demand is price inelastic. when demand is price elastic and is Falling ; rising Negative ; positive Rising ; falling Positive ; negative
Which of the following is a barrier to entry in a monopoly market? Antitrust laws. Economic profit of the monopolist. Economies of scale. A rising long-run average total cost curve.
Which of the following are characteristics of a monopoly market? (Check all that apply.) In the short run, positive economic profit possible P > MC at the profit maximizing quantity In the long run, positive economic profit possible In the short run, only zero economic profit possible V Significant barriers to entry In the long run, firms operate at the minimum of the ATC curve MR = MC at the profit maximizing quantity UEasy entry/exit OP = MC at the profit maximizing quantity In the long run, only zero economic profit possible
Compared to the perfectly competitive industry, a monopoly options: provides a higher quantity. provides exactly the same quantity. charge the same price. provides a lower quantity.