If a monopolist with significant barriers to entry is making positive economic profit in the short run, what do we expect to happen as the market transitions to the long run? O The profit will increase since the monopolist has no competition, they can just raise the price to earn higher profits. It will decrease as positive economic profit signals new firms to enter the market, increasing the market supply, and lowering the prevailing price. It will increase, in the long run fırms will drop out the market increasing the monopolists dominance in the marketplace. The profit will stay the same, strong barriers to entry prevent new competition.

Graph shows the cost and revenue information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue. and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below? Costs and revenues 30 27 24 21 18 15 9 6 3 0 3 6 9 12 15 Quantity per period 18 21 MR D=AR MC AC

Many schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…

O Macmillan Learning (Figure: Determining Monopolist Profit) Based on the graph, the profit-maximizing price is at point Price and Cost h Of. O g. d. C MR Output MC ATC

ystem (Academic) Mes of Microeconomics || Fall20 Suppose a monopolist's costs and revenues are as follows. ATC = S50, MC = $35; MR = $40; P $55. The firm should of Select one: O a. decrease output and increase price. tion O b. increase output and decrease price. O c not change output or price. O d. shut down. Next page s page 00 HUAWEI Nova 3 Al CAMERA

a.   At what output rate and price does the monopolist operate?         b.   In equilibrium, approximately what is the firm’s total cost and total revenue?         c.   What is the firm’s economic profit or loss in equilibrium?

Answer the question by referring to the table below. The table shows the demand curve facing a monopolistwho produces at constant marginal cost of 6. In short-run equilibrium, the monopolist will produceQuantity Price10 1020 930 840 750 660 5a) 20 unitsb) 30 unitsc) 40 unitsd) 50 units

When will a monopoly be economically efficient?      a if it produces where the marginal cost equals the average cost b if it produces where the marginal cost is greater than the average cost c if it produces where the marginal cost is less than the average cost d if it produces where the marginal cost equals the price

Chapter 9 - Monopoly OPEN Suppose the following are true for a monopolist market: P = 450 - 16Q MR = 450-32Q MC = 55+ 37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? Q* = P = S How much profit did the monopolist earn? Profit = S O E a hp * a

In a monopoly situation, the more inelastic is the demand,     Seleccione una: a. higher is going to be the equilibrium price b. lower is going to be the equilibrium price c. lower is going to be the unbalance between demand and supply d.   higher is going to be the unbalance between demand and supply