Table 10-1 MonopolyQuantity PriceTotalAverage MarginalMarginalRevenueRevenueTotalCost(TR)(MR)Cost(MC)(ATC)1$720$720$720$420$3002$660$1320$600$350$2803$580$1740$420$300$2004$500$2000$260$350$5005$420$2100$100$420$7006$340$2040$(60)$510$9607$260$1820$(220)$620$12808$180$1440$(380)$750 $1660Assuming that the monopoly firm is regulated by average cost pricing, the profit/loss would be:Select one:O a. 600Ob. 840DO c. 620O d. 0

In a market, different approaches are used to determine the price and quantity by a monopolist,…

Table 10-1 Monopoly Quantity Price Marginal Average Marginal Revenue Total Cost (MR) Cost (MC) (ATC) 1 $720 $720 $720 $420 $300 2 $660 $1320 $600 $350 $280 3 $580 $1740 $420 $300 $200 4 $500 $2000 $260 $350 $500 $420 $2100 $100 $420 $700 $340 $2040 $(60) $510 $960 $260 $1820 $(220) $620 $1280 8 $180 $1440 $(380) $750 $1660 Assuming that the monopoly firm is regulated by average cost pricing, the profit/loss would be: Select one: O a. 600 O b. 840 O c. 620 O d. 0 5 6 7 Total Revenue (TR)

Table 10-1 Monopoly Quantity Price Marginal Average Marginal Revenue Total Cost (MR) Cost (MC) (ATC) 1 $720 $720 $720 $420 $300 2 $660 $1320 $600 $350 $280 3 $580 $1740 $420 $300 $200 4 $500 $2000 $260 $350 $500 $420 $2100 $100 $420 $700 $340 $2040 $(60) $510 $960 $260 $1820 $(220) $620 $1280 8 $180 $1440 $(380) $750 $1660 Assuming that the monopoly firm is regulated by average cost pricing, the profit/loss would be: Select one: O a. 600 O b. 840 O c. 620 O d. 0 5 6 7 Total Revenue (TR)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 26CTQ: Why are generic pharmaceuticals significantly cheaper than name brand ones?

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