When the total product curve is falling, the marginal product of labor is negative. A price-taking firm cannot influence the price of the product. A monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. Total cost always greater then fix cost never equal to fix cost. The key difference between a competitive firm and a monopoly is the ability to influence the price.
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Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line.
- When the total product curve is falling, the marginal product of labor is negative.
- A
price -taking firm cannot influence the price of the product. - A
monopoly maximizes profit by choosing the quantity at which marginal revenue greater than marginal cost. - Total cost always greater then fix cost never equal to fix cost.
- The key difference between a competitive firm and a monopoly is the ability to influence the price.
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- A graph of a monopoly is shown. The initial position of the cost curves do not accurately represent their true relationship. First, move point E to indicate the monopoly's loss-minimizing price and quantity. Then, shift the average total cost (ATC) curve and average variable cost (AVC) curve to show the monopoly operating at a loss. Finally, position the loss box to indicate the monopoly's total loss. Price E MR ATC MC AVC D Lossonsider total cost and total revenue, given in the following table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Quantity Total Cost Marginal Cost Total Revenue Marginal Revenue Profit (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) 0 5 0 1 6 6 2 8 12 3 11 18 4 15 24 5 20 30 6 26 36 7 35 42 can you plaes help me with thisThe blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be scored on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 100 TOTAL REVENUE (Dollars) 90 80 20 10 0 1250 1125 1000 875 750 625 500 On the previous graph, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, or 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 375 250 125 + 0 0 0 Demand 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) + 5 20 10 15 25 30 35 QUANTITY (Number of units) 40 Graph Input Tool Market for Goods 45 50 Quantity Demanded (Units)…
- Draw the graph. If the monopoly is a price-discriminating monopoly charging some customers P1= $950 and other customers P2=$400, then: At the price P1= $950, the monopoly will sell a quantity Q1 = ______ At the price P2= $400, the monopoly will sell a quantity Q2 = ______. (Obs: calculation required here!) Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________. The profit earned from selling the quantity Q1 at P1 is Profit1 = ____________________(identify the area on the graph and calculate it). The profit earned from selling the quantity Q2 at P2 is Profit2= ____________________(identify the area on the graph and calculate it). The total profit earned by the price discriminating monopolist is Profit = Profit1 + Profit2 = _______.Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 250 225 200 175 150 125 100 75 50 25 0 0 5 10 Demand 15 20 25 30 35 40 45 50 QUANTITY (Units) Graph Input Tool Market for Goods Quantity Demanded (Units) Demand Price (Dollars per unit) 25 125.00 ?On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.
- Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line. The key difference between a competitive firm and a monopoly is the ability to influence the price.Price and cost (dollars) 50 40 30 20 ATC 10 MC MR 10 20 30 40 50 Quantity (thousands of households) The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC operated under an average cost pricing rule, how many households in Oakland are served? 20,000 30,000 10,000 40,000What is the marginal revenue for the following: qty: 100, 200 Price:39750, 39500 Revenue:3975000, 7900000 Total Cost: 2000000,4000000 Profits: 1975000,3900000 Marginal Revenue ___?, ___? Suppose that managers at Honda are deciding how to price the new Honda Accord. The managers estimate that their total costs increase by $20,000 for each car they produce. They also estimate the demand curve they face; it is described by the equation: Q = -0.4 P + 16,000, where Q represents the quantity of Honda Accords they will sell and P represents the price they charge in US dollars. We can re-write that demand curve as: P = 40,000 - 2.5 Q. Take every possibly quantity that the managers might choose between 0 and 7,000 in units of 100. For each possible quantity, calculate the associated price the managers would need to charge, the revenue they would earn, and the total costs. You can then calculate profits for each level of quantity. Highlight the cell that contains the highest value of profit.…
- Student Resources Working at Clayton.... 3/3 practice Gigantic Pharmaceutical Corporation has a patent on a prescription drug, making it the only manufacturer of that prescription drug. Gigantic is currently earning a positive economic profit. (a) Draw a correctly labeled graph for Gigantic and show each of the following. (i) The profit-maximizing quantity, labeled QG (ii) The profit-maximizing price, labeled PG (iii) The average total cost curve, labeled ATC (iv) The area representing the consumer surplus, shaded completely (b) Suppose the demand for the prescription drug increases, and Gigantic hires its warehouse workers in a perfectly competitive labor market. (i) What will happen to Gigantic's demand for warehouse workers? Explain. (ii) What will happen to the wage rate Gigantic pays its warehouse workers and the number of warehouse workers it hires? (c) After Gigantic's patent expires, another firm enters the prescription drug market and produces an identical drug that sells for…COURSE: MICROECONOMICS - PERFECT COMPETITION AND MONOPOLY (RESUBMITION QUESTION) We appreciate a perfect competition market where there is a predetermined limit number of firms with 20 total firms.Each has the cost function such that: CTi = qi2 + 4qi + 3 where qi indicates numbers of firms (i = 20) The demand in the market is: Q = 100 - 4pa) What is the individual supply of each firm?b) What is the supply of the whole industry?c) Obtain the market equilibriumIn the case where a new firm intended to enter a monopolist's market:(a) What kind of legitimate entry barriers can the firm face understanding the nature of the market it wishes to enter?b) What type of anticompetitive barriers could the firm already in the market present?Sub : EconomicsPls answer very fast.I ll upvote correct answer. Thank You Frustrated with DTCs monopoly, several diamond mining interests and large retailers collectively set up a joint venture called Adamantia to act as a com- petitor to DTC in the wholesale market for diamonds. The wholesale price is now given by P =120−QD −QA, where QA is the quantity that Adamantia chooses to sell. Assume that Adaman- tia also has a cost of 30 (hundred dollars) per high-quality diamond. Answer the following questions and show your work. (A) Write DTC’s profit, ΠD, in terms of QD and QA in this duopoly situation. Find the DTC’s best response function. (B) Write Adamantia’s profit, ΠA, in terms of QD and QA. Find the Adamantia’s best response function. (C) What quantity does each wholesaler supply to the market in Nash equilibrium? (D) What wholesale price do these quantities imply? What will the Nash equilib- rium profit of each supplier be in this duopoly situation?