2. The figure below shows demand, marginal revenue, and short-run cost curves for a monopoly: Price and cost (dollars) 30 20 10 0 2,000 MR 4,000 Quantity D a. How much should the firm produce? What price should it charge? b. What is the firm's profit (loss)? c. Should this firm produce or shut down? Explain. d. If the firm shuts down in the short run, how much will it lose? 6,000 SMC ATC AVC

Which of the following is not an artificial barrier to entry into a monopoly market?     Answers: A.  Patent   B.  Economies of scale   C.  Legal harassment   D.  Bundling products

What is the deadweight loss associated with monopoly? A. The loss in consumer surplus due to high prices and reduced output B. The loss in producer surplus due to low prices and excess supply C. The loss in government revenue due to taxation D. The loss in economic efficiency due to government intervention

Chapter 9 - Monopoly OPEN The table below shows cost data for producing different amounts of cleaning products. Suppose the market is a monopoly. Use the information in the table to find the missing data for each quantity. Marginal Revenue in $ B O Ei MUND Price in $ Quantity Total Revenue in $ 9- 20.00 16.00 13.00 12.00 8.00 5.00 0 3 a 12 15 a hp $09 Wel $ 4 9. I am finished 4:34 PM 10/16/2022 88°F ^ @ 4)) 易

Sandy Cove is the only beach resort on a small island and the only beach activity it offers is jet ski rides. The graph shows the marginal cost of a ride and the demand for rides. The resort is a single-price monopoly. G Draw the firm's marginal revenue curve. Start the curve at the y-axis. Label it. The number of rides taken each hour is >>> Answer to 1 decimal place. The price of a ride is $ >>> Answer to 2 decimal places. 30- 25- 20- 15- 10- 5 Price and cost (dollars per ride) MC D Quantity (rides per hour) >>> Draw only the objects specified in the question.

The table below shows cost data for producing different amounts of saucepans. Suppose this market is a monopoly. Use the information in the table to find the missing Total Revenue and Marginal Revenue for each quantity. Marginal Revenue in $ *** S O Price in $ Quantity 5.00 4.00 3.00 2.00 1.00 0.00 0 1 2 3 5 a 0 Total Revenue in $ 4 6 6 4 0 22 # $9 hp STRIK T 90°F 4:20 PM 10/16/2022 易

Price and cost MO 120 Township is a small, isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could. The Township Gazette is the only source of news. The graph shows the marginal cost of printing the Township Gazette and the market demand for it. The Township Gazette is a profit-maximizing, single-price monopoly. What is the efficient number of copies of the Township Gazette and what is the price at which the efficient number of copies could be sold? 100- The efficient number of copies of the Township Gazette is and the price at which this number could be sold is cents a copy. GALLE 80- 60- 40- 20- D 04 0 100 200 300 400 500 Quantity (newspapers per day) 600 5

28. The following is a graph of a non-price discriminating monopoly in the short run. (a) What is the profit-maximizing level of output? (b) What is the economic profit? (c) What is the long- run equilibrium of this firm? £ P1 supernormal profit Q1 MR MC AC D=AR

3 In a town called Flicksville in a rural area, there is just one gas station called Flick’s Gas. This gas station resembles a monopoly on the sale of gasoline. Flick’s Gas is currently earning economic profit while operating as a monopoly. Draw a correctly labeled graph for Flick’s Gas and show each of the following in your graph a. The profit-maximizing quantity denoted as QF b. The profit-maximizing price denoted as PF. c. The deadweight loss associated with the Flick’s profit-maximizing quantity. Shade this area in your graph. d. Assume that fixed costs for Flick’s Gas has increased because the management at Flick’s Gas negotiated a new contract. Will each increase, decrease, or remain unchanged at Flick’s profit-maximizing quantity?

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