10060MC=ATCMR20Demand4080The graph above depicts the market for pastries. What is the profit for the firm if the market for pastries isa monopoly?$450$800$1600$400

A monopoly firm produces at MR = MC in order to maximize the profit. In the given figure, MR and MC…

Answered: 100 60 20 MR MC-ATC Demand

Business

Economics

100 60 20 MR MC-ATC Demand

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 24RQ: How does the quantity produced and price charged by a monopolist compare to that of a perfectly...

See similar textbooks

Related questions

Q: Very large aggregate supply changes are always responsible for very high inflation rates. Select…

A: Aggregate supply: It refers to an increase in the total output of goods and services. It shows the…

Q: Migration and income inequality is positively related. Explain.

A: The single greatest effect on development is the extending hole between the lower working class and…

Q: theory of macroeconomic fluctuations is also the short run model of the macroeconomy and assumes…

A: Microeconomics is a part of standard economical matters that concentrates on the way of behaving of…

Q: I want you to make a cash flow diagram on the given problem below. Only the Cash Flow Diagram (CFD),…

A: The cash flow diagram is a diagram that shows the outflow and inflow of cash for each of the…

Q: 11.(a) Find an expression for the IS curve of the domestic economy. There is no need to show…

A: IS curve shows the goods market equilibrium. It is derived by the equilibrium of aggregate demand…

Q: D6) Which of the following is NOT among the steps of the forecasting process? Forecast condensed…

A: When talking about forecasting process, it can be said that this process is primarily based on…

Q: please explain the balancing and reinforcing loops of the CLD

A: Commercial location development (CLD) is a strategy utilised by the government to position its area…

Q: How do political dynasties affect society

A: A political dynasty, can often be call a political family system, is a family system in which the…

Q: Question 4 If firms are competitive and profit maximizing, the price of a good equals the...…

A: "A competitive market structure in economics is the one in which there are many buyers and sellers.…

Q: Which of the following is not an assumption of monopolistically competitve markets? Group of answer…

A: Monopolistic competition basically refers to a usual market condition in which competitors providing…

Q: 1) The data of unemployment is given below: - Employed population is 42.5million - Participation…

A: Unemployment rate is the percentage of labor force, willing and able to work and actively searching…

Q: At a price of $1 each, Luciana (an average Bloomington resident) consumes 100 32-ounce sodas per…

A: To explain the implications of above policy change we use following budget line and IC's -…

Q: Refer to Figure 2 in Question 26. In order to maximize profits, the monopolist should charge what…

A: Profit maximizing price is such a price that corresponds to profit-maximizing quantity via the…

Q: How will the changes in the market affect the FIRM represented in Table 5-1 in Question 8 in the…

A: We know that in the long run, each firm earns zero economic profit or just normal profit. So…

Q: Question 25 The defining characteristic of a natural monopoly is Group of answer choices constant…

A: In monopoly, eqm Q(quantity) is found by the intersection of MC(marginal cost) and MR(marginal…

Q: (For this question only, assume) Domestic output Y and domestic interest rate i are fixed. Define…

A: When talking about economic sanction, it is the government policy that is implemented against the…

Q: The details for the two project proposals are shown below: IRR NPW (15%) EUAW(15%) PROJECT 1 20.01%…

A: Answer is given below

Q: Question 1 What is the significance of a price elasticity of demand that is equal to 2?

A: The link between the price of a good and the quantity demanded is represented by price elasticity of…

Q: QUESTION FIVE: CONSUMPTION UNDER UNCERTAINTY (a) What does it mean for consumers to maximize…

A: * SOLUTION :- (5) From the given information the answer is provided as below as ,

Q: Question 34 One of the main methods that monopolistically competitve firms use to create product…

A: Monopolistic competition is a type of market structure.

Q: Price & quality C B A Quantity D

A: From the above diagram, the horizontal axis is denoting the quantity while the vertical axis is…

Q: Y₁ = A[K² + N²]¹/² Production function: K₁₁ = (18)K + 1₂ Capital evolution: t+1 I = SY₂ t…

Q: Two players: The employee (Linda) and the employer (Vera). Linda has to choose whether to pursue…

A: Dear Student as you have posted multiple sub-parts in a question but according to our policies and…

Q: For all graphs, be sure to correctly and completely label all axes and curves and use arrows to…

A: at the point when the amount of total output provided is equivalent to the amount of total output…

Q: The Johnson Corporation reported the following income statement and balance sheet amounts and…

A: * SOLUTION :- (9) Given that ,

Q: AD 45° AD₁ =C+I+G+NX the Pl Y₁ ct of the following on the AD curve and equilibrium output Y. Draw…

A: The aggregate demand changes with change in the government expenditure. Rise in the government…

Q: The data of unemployment is given below: - Employed population is 42.5million - Participation rate…

A: Labor force is the sum of employed and unemployed people. Employed are the people who are willing…

Q: correctly

A: The formula for terminal growth in FCF is FCF *(1+g)/(k-g) where FCF is the terminal years cash…

Q: Examine the graph below. Assume this firm is producing at its profit-maximizing output. In the long…

A: The monopolist's profit-maximizing degree of output is found by comparing its marginal revenue with…

Q: Consider the three small mutually exclusive investment alternatives in the table below. The feasible…

A: A B C Investment Cost 2000 8000 20000 Annual Revenue 600 2200 3600 n 5 5 10

Q: Suppose that in 1980, the U.S. inflation rate was 12.5 percent and the unemployment rate reached 7.4…

A: A target interest rate is a set of interest rates - such as the overnight lending rate, the repo…

Q: Question 35 The main difference between monopolistic competitors and perfect competitors is that…

A: A monopolistic market and a perfectly competitive market are 2 market formation that have various…

Q: 1) The data of unemployment is given below: - Employed population is 42.5million -…

A: "Unemployment measures the number of people who are not working or out of work but are actively…

Q: In what sense is a competitive equilibrium a good or bad thing for a given economy?

A: When talking about competitive equilibrium, it is the situation in the market where many firms…

Q: Using the ZZ/Y and NX graphs, illustrate graphically and explain what effect a decrease in consumer…

A: Imports lead to a surge of assets from the country since import exchanges include installments to…

Q: Question 13 If a firm operating in a competitive industry shuts down in the short run, it can avoid…

A: The structure of a market where there are numerous firms competing with each other for selling goods…

Q: Question 2 Which of the following firms is the closest to being a perfectly competitive firm? Group…

A: Answer is given below

Q: For a perfectly competitive firm, profit maximization happens at: A. P=MC B. AR=MC C. MR = ATC D. MR…

A: A perfectly competitive market is the special type of market where a single firm cannot influence…

Q: The maintenance cost for a certain machine is $1,000 per year for the first 5 years and $2,000 per…

A: Given:- Cost for first 5 year=$1,000Cost for next 5 year=$2,000i=10% or 0.1n=5 years To calculate:-…

Q: Problem 6 Your company is in the process of adding a new line for making a new product. The fixed…

A: Given information Fixed cost=$21000 Variable cost=$50 per unit P=-0.5X+300

Q: The derivative based strategy known as portfolio insurance involves a. the sale of a put option on…

A: When talking about derivatives, it can be said that these are the ways to make a contract at the…

Q: Solve for and fill in the missing portions of the following table to derive the monopsonist's…

A: Marginal physical product refers to the change in the level of output due to a change in the level…

Q: What are the possible effects of minimum wage increase to the economy?

A: Minimum wage is the lowest wage below which an employee cannot hire workers.

Q: Suppose that the required reserve ratio is 9%, currency in circulation is $620 billion, the amount…

A: Required Reserve = 9% Currency in Circulation = 620 billion Checkable deposit = 950 billion Excess…

Q: Suppose the United Kingdom produces two types of goods: agricultural and capital. The following…

A: PPF shows different combinations of two goods that can be produced with the given level of resources…

Q: The graph below shows the short- and long-run supply (Ssr, Slr) and demand (Dsr, Dlr) curves for…

A: A price ceiling is the maximum a producer may charge for their good or service. This is frequently…

Q: The experience of Greece illustrates some of the challenges of the eurozone. As a result of the…

A: In this situation:- Due to the global financial crisis that began in 2007–2008, Greece was in deep…

Q: Compute the percentage change in nominal GDP, real GDP, and the GDP deflator in 2021 and 2022 from…

A: Percentage change = [(Current Value - Previous Value) / Previous Value] * 100

Q: A 6-month put option on James Corp.'s stock has a strike price of $45 and sells in the market for…

A: Formula to be used: Option Premium = Option price - Exercise value

Q: Q4. Evaluate to total present worth of all the cash-flow of machine XYZ for an interest rate of 10%…

A: Answer is given below

Question

100
60
MC=ATC
MR
20
Demand
40
80
The graph above depicts the market for pastries. What is the profit for the firm if the market for pastries is
a monopoly?
$450
$800
$1600
$400

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
What is a legal monopoly?
Is a monopolist allocatively efficient? Why or why not?
How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?
What is a natural monopoly?
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
An unregulated natural monopoly bottles Elixir, a unique product with no substitutes. The monopoly's Ktotal flaxed cost is $150,000 and its marginal cost is 20 cents a bottle. How many bottles of Elixir does the monopoly sell and what is the price of a bottle of Elixir? is the monopoly's use of resources efficient? CELL The graph shows the demand curve for Ex Draw the marginal revenue curve. Label it MR Draw the marginal cost curve. Label it MC. Draw a point at the monopoly's profit-maximizing quantity and price Elixir sells million bottles a year and the price is cents a bottle >>>Answer to 2 decimal places The firm produce the efficient quantity because OA does not marginal benefit equals marginal cost OB. does not marginal benefit exceeds marginal cost OC does; marginal revenue equals marginal cost OD does, marginal benefit equals marginal cost 604 00- 40 30+ 20 304 Price and cost (cents per bottle) D Quantity (millions of bottes per year) > Draw only the objects specified in the…
Use the following diagram representing a monopoly to answer the following questions MC ATC 12 11 8 MR Q 2400 2600 3000 3300 5000 What is the profit maximizing quantity of production and price? Calculate Total revenue, total cost and profit (loss) 3.
What is the critics of a monopoly market. Explain in detail.
What is the limitations in a monopoly market. Define it in in a proper way.
A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…
The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits 1. Place point E at the monopoly's profit maximizing price and quantity 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit 10 MC Profit 7 ATC 4. 3 2 1 MR 0 4. 1 3 7 Quantity (millions of units) 10 LO et LO Price (S per unit)