A monopoly company has an average variable cost of $6, average fixed cost of $8, marginal cost of $9, and elasticity of demand -4. In the short run, the company will: set P=$9. earn negative profit so shut down earn negative profit but still produce. set P-$12. set P=$14. earn positive profit. set P-$6. earn zero profit.
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- A monopoly shuts down when never, because it can raise its prices as high as necessary to keep operating and maximize profits. the short run price is below its average variable costs. the average cost is less than price. the long run price is below its average variable costs.Given the following information for a monopoly firm: Demand: P = 80 - 5(Q) Marginal revenue: MR = 80 - 10(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? Number 2. At what price (P) will this firm maximize profit Number 3. What is the total revenue (TR) earned at this output level Number 4. What is the total cost (TC) accrued at this output Number Number 5. What profit is earned Assume this firm is to be regulated. Answer the following questions: 6. Under the Marginal Cost Pricing,what is the optimal quantity Number 7. Under the Marginal Cost Pricing,what is the optimal price NumberA monopoly is operating at a quantity where average total cost is $70, marginal revenue is $50, and the price is $65. If the monopoly's ATC curve is U-shaped and is currently at its minimum level, then to maximize profits, this business should: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a raise quantity produced. b lower quantity produced. not change the quantity produced since it is already maximizing profits. d. shut down.
- A monopoly is producing 1000 units of outputs at price of $20. At that level of output, marginal cost is $5 and average cost is $8.The monoply firm is earning profit equal to ?The inverse demand curve a monopoly faces is p=120-2Q. The firm's cost curve is C(Q) = 40 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is 28.50. (Round your answer to two decimal places.) The profit-maximizing price is $63.00. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $ 1584.50. (round your answer to two decimal places.) How does your answer change if C(Q)= 100+6Q? The increase in fixed cost OA. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases. B. causes the firm to increase both the price and quantity, and profit increases. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. D. has no effect on the equilibrium price and quantity, but profit will decrease.The inverse demand curve a monopoly faces is p= 110 -Q. The firm's cost curve is C(Q) = 30 + 5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 52.50. (Round your answer to two decimal places.) The profit-maximizing price is $ 57.50 . (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.) 13 MacBook esc 80 F1 F2 F3 F4 F5 F6 # $ % 1 3 4 Q W R tab T A caps lock F
- For a monopoly firm, marginal revenue when demand is price inelastic. when demand is price elastic and is Falling ; rising Negative ; positive Rising ; falling Positive ; negativeThe inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 62.5. (Round your answer to two decimal places.) The profit-maximizing price is $ 67.5. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.)The figure below represents the cost and revenue structure for a monopoly firm. Cost and Revenue($) Pot Q₂ Q₂ Q₂Q₂ Quantity A profit-maximizing monopoly's total revenue is equal to: a. P3 x Q₂ b. P₂ x Q4 C. (P3-Po) x Q₂ d. (P3-Po) x Q4
- A price taker options: is a seller who can set whatever price they want. is a seller who has no control over the price they charge. is a buyer who has no control over the price they pay. is common in a monopoly.You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm’s profits? Price: Quantity: b. Calculate the maximum profits. $ c. Is demand elastic, inelastic unit elastic Elastic d. What price-quantity combination maximizes revenue? Price: Quantity: e. Calculate the maximum revenues. $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination? multiple choice Elastic Unit elastic InelasticName a firm of business that is selling a good or item that is not so unique. However, in the local market, it's able to enjoy monopoly power. Although it's a monopoly, you don't see other firms entering the market. Name one possible entry barrier that could be keeping other firms from entering and competing with the suggested business.