please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly The following graph illustrates the demand (D) curve of an industry as well as the marginal cost (MC) and average total cost (ATC) curves of theonly firm in this industry.Refer to the graph to answer the questions that follow.PRICE (Dollars)100908070605040302010MC-->ATCD00 10203040 5060708090 100QUANTITY (Units)This firma natural monopoly.If the firm produces 72 units and charges $24 per unit, it will(?If the government forces the firm to set the price equal to marginal cost, the firm will produceIf the government requires the firm to earn only zero economic profits, the firm will produceunits of output.units of output.

The average total cost (ATC) of a natural monopoly is decreasing with increase in output. In the…

Answered: The following graph illustrates the…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 6SQP

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Similar questions

How is monopoly different from perfect competition?
Sol-Motors is the only auto manufacturer in West Lidia, a country that prohibits the importation of cars. The graph below shows the demand and the costs for Sol-Motors. Costs and revenues (in thousands) 130 120 110 100 90 80 70 60 50 40 30 20 10 0 Price: $ 15. 45 75 9010512013550165180195 30 60 Quantity per period (in thousands) MC D thousands a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors' profit-maximizing output and price? Output: thousands Tools MR K c. Suppose that the government of Lidia imposes a price ceiling of $35,000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands
The following graph depicts the demand (D), marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves for a firm operating as a natural monopoly. Costs and Revenues (dollars) 80 70 60 50 40 30 20 10 0 Market for a Natural Monopoly MC Quantity and ATC MR 10 20 30 40 50 60 70 80 90 100 D B ↑ Instructions: Enter your answers as a whole number. a. If the firm is operating as a natural monopoly, what is the profit-maximizing level of output and price charged to consumers? $ units will be sold b. At what price would the firm earn a normal profit? c. Suppose the government regulated the monopoly such that it were required to charge the perfectly competitive price. What is the regulated price?
What does a firm that is a natural monopoly derive its market power from? Group of answer choices A. Control over a natural resource, like diamonds or crude oil B. Constantly increasing fixed costs C. Patents and other legal protections for innovative products D. Declining average cost for all levels of demand
Ron's Hamburger Place is the only restaurant in town, a monopoly Price and cost (dollars per hamburger) 10.00 9.00 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0 Price: $ [Select] ATC: $ [Select] 10 Profit: $ [Select] dan da MR MC Alt Text: Ron's Hamburger Place What is the profit maximizing output, price, and economic profit of Ron's Hamburgers, monopoly? Quantity: [Select] hamburgers per hour ATC 20 30 40 50 Quantity (hamburgers per hour) per hamburger
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 5.0
3 13 out of question The graph below shows the demand, revenue and cost curves for a monopoly operating in the short run. Use the graph to answer the questions that follow: Price and costs (dollars per unit) 5 4 3 لیا 2 0 20 MC 40 MR 60 80 100 120 Quantity (units per day) What is the consumer surplus given change from monopoly to perfect competitor? ATC D
Price (Dollars per Garment) 7 D E 5 АС-МC Demand Marginal Revenue 20 Garments cleaned per year (millions) The long run average and marginal cost of dry-cleaning services is $5, as shown in the graph. Given the demand curve and the marginal revenue curve shown in the graph, which of the following is true? Select one: O . If the industry were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $7 per garment. Ob. If the industry were perfectly competitive, 10 million garments would be cleaned each year. If the market were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $5 per garment and monopoly economic profit would be zero. O d. If the industry were perfectly competitive then the long-run equilibrium price of dry-cleaning services would be $7 per garment.
There are 1000 competitive firms of the size represented by AC1, and AC2 represents the only firm if there were a monopoly. In the figure below, how much less does an unregulated monopoly produce compared to a perfectly competitive industry? Price $70 $60 $50 $40 A B C D Same 20b fewer units 30b fewer units 40b fewer units X 50b fewer units MC, AC, Qi-50m MC, AC AC -MC Quantity Price MR Your answer MC JAC D 30b 40b 50b 60b Quantity
Explain, with the aid of a graph, the short run equilibrium position of a firmoperating as a monopoly.Include the following in your graph as well as your explanation:• The profit maximising output of the firm• The price• Type of profit earned by the firm
The graph shows the marginal cost curve, average total cost curve, and demand curve of a natural monopoly. Draw a point to indicate the output and price under an average cost pricing rule. Under an average cost pricing rule, the firm OA. makes an economic profit OB. produces the efficient quantity OC. incurs an economic loss OD. makes zero economic profit
According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget to subtract total cost from total revenue. Price ($) 18 16 14 12 10 8 6 4 42 $60 $80 $240 $-120 MC1 АТС1 AVC1 MR₁ 10 20 30 40 50 60 70 80 90 Quantity

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