A profit-maximizing monopolist sets: A. Price where MC=MR. B. Produces output where MC=MR. C. Both A and B are correct. D. Neither A or B is correct.

Figure monopolist, to answer questions a-c. a.  indicate the profit maximizing price and output level and label them P 1 and Q 1. b. Shade in the area that represents the firm's economic profit (or loss). c. If this firm wished to discourage entry by other firms it could produce the output level at which it earns only a zero economic profit. Indicate the price and output level associated with a zero economic profit and label them P 2 and Q 2.

Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs are $1.5 million. Its revenues are $1.2 million. Should the firm shut down in the short run? Should it leave the industry in the long run?   a no; yes b no; no c yes; yes d yes; no

A profit−maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to     A. −1.   B. −0.5.   C. −8.   D. Any of the above—the price elasticity does not matter.

The Mamas and the Papas, a monopolist, faces a constant marginal cost of $3 of producing cashews. If it believes the elasticity of demand for cashews is -4, calculate the price it should charge for its product.

If variable costs decrease, what will a monopolist do?     a raise prices and reduce output. b lower prices and expand output. c raise prices and expand output. d lower prices and reduce output.

The Mamas and the Papas, a monopolist, faces a constant marginal cost of $3 of producing cashews. If it believes the elasticity of demand for cashews is -4, calculate the price it should charge for its product.    Write answer explicitly

.If MR > MC, the monopolist should: MR = Marginal Revenue MC = Marginal Cost Group of answer choices decrease production. stop producing. increase production. maintain the same level of production.

The single-price monopolist produces where price is marginal revenue curve. a. less; less; below b. less; less; above c. greater; less; below d. greater; greater; above e. greater; greater; below than marginal cost because for it price is than marginal revenue and its demand curve lies its

It is possible for a monopolist's to earn economic profits even in the long run due to:    a. its barriers to the entry of other firms. b.  the nature of the monopolist's product. c. its practice of third-degree price discrimination.