ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Group price discrimination results in social welfare that ________ under a single-price monopoly .
is greater than
is lower than
might be greater or might be lower than
is the same as
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- 31) If the market demand elasticity is constant at -3 and a monopolist's MPL = 1.2L-0.5, then the labor demand for the monopoly is A) 0.8PL-0.5. B) 0.4PL-0.5. C) 0.8PL-2. D) 0.4PL-2. 32) Suppose the market demand elasticity is constant at -2, and there are three identical firms in the oligopolistic market. A Cournot firm's MPL = 1.2L-0.5, then the labor demand for a Cournot firm is A) PL-0.5. B) 0.6PL-0.5. C) 0.2PL-2. D) PL-2. 33) If the labor market is competitive, a monopoly output market will result in A) a lower wage than that of a competitive output market. B) a higher wage than that of a competitive output market. C) less labor hired than in a competitive output market. D) more labor hired than in a competitive output market. For the following, please answer "True" or "False" and explain why. 34) If the price of a competitive firm's output increases, the firm responds in the short run by demanding more labor. 35) If the…arrow_forwardSuppose that for a monopolist, MR=MC=$10 and P=$15 at the profit-maximizing level of output. At this level of output, the firm A. Is earning profit B will shut down if AVC>$15 C is making $5 profit on each unit sold D will shut down if ATC>$15 E is losing $5 per unit producedarrow_forwardA monopolist has set her level of output to maximize profit. The firm's marginal revenue is $20, and the price elasticity of demand is -2.0. The firm's profit maximizing price is approximately ✓. The Lerner index of monopoly power is In a perfectly competitive market, the Lerner index isarrow_forward
- Would producer surplus with second-degree price discrimination not below a single price.arrow_forwardExhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in Exhibit 9-7, in the short run, the monopoly will: earn an hourly profit of $80. MC break even (i.e., earn zero economic profit). suffer an hourly loss of $160.arrow_forwardConsider a single-price monopoly. The government is considering to impose 10% tax on its profits. After the tax, the deadweight loss in this market will increase. True Falsearrow_forward
- A natural monopoly is defined as an industry in which one firm can produce the entire industry output at a lower average cost than a larger number of firms could. can produce the entire industry output at a lower marginal cost than a larger number of firms could. is very large relative to other firms that could enter the industry. can earn higher profits if it is the only firm in the industry rather than if other firms also enter the industrarrow_forwardThis is part 1 of a three-parts question. A uniform-pricing monopoly faces the inverse demand function P = 50 - 4Q and has costs given by TC = 100 + 20Q + 3Q². Fill in the blanks. The monopolist will produce decimal places.) units of output at a unit price of (Round to at least 2arrow_forwardMacmillan Learning The demand curve for a monopolist is P = 75-0.5Q, and the monopolist's marginal cost curve is defined using the equation MC = 2Q. Assume also that ATC at the profit-maximizing level of production is equal to $12.50. The deadweight loss associated with the profit maximizing level of output is: (Answer with two decimal places)arrow_forward
- For a monopoly, marginal revenue is less than price because A) the firm is a price taker. B) the firm must lower price if it wishes to sell more output. C) the firm can sell all of its output at any price. D) the demand for the firm's output is perfectly elastic.arrow_forwardA monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by P1=10-2/3q and the inverse demand curve in country 2 is given by P2=18-qIf book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined? (Incomplete)arrow_forwardAssume a monopoly firm is considering the production of two brands, 1 and 2. Marginal cost is constant at 20 for both products -- assume no fixed costs. The inverse demand for brand i is pi=140−qi−dqj , where i≠j and d is a constant. Part A) Find the firm's QUANTITIESarrow_forward
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