Match each label to the situation it describes. Drag each item on the left to its matching item on the right. The government caps the prices a cortpany can charge. The total surplus in a market is lower than it could be. A group seeks to restrict the number of government-issued licenses. A monopolist sells products grouped together rather than separately.

The profit maximizing monopolist would achieve loss minimization when... Group of answer choices   Price is above average total cost.   Total cost equals total revenue.   Price is between average total cost and average variable cost.   Price is below average variable cost.

An oligopolist can price discriminate if it is able to customers with inelastic demand. Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a b C d raise, raise raise, lower lower, raise. prices on customers with elastic demand and lower, lower prices on

There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).

monopolist’s profit-maximizing output is 500 units per week and it sells its output at a price of $70 per unit. The firm’s total costs are $15,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits?

Would producer surplus with second-degree price discrimination not below a single price.

Exhibit 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.

Suppose a monopolist sells a product to faculty members and students on the campus.  If the firm sets a single price, the monopolist produces 5000 units and sell them at the price of $3 per unit.  At this price, the price elasticity of demand for faculty member is -2.5. And the price elasticity of demand for students is -1.5.  The monopolist is considering whether she should set different prices for the faculty members and students and asks for your advice.  The monopolist is thinking about charging faculty members a 10% higher price.  The quantity demanded by the faculty members would fall by  %. The monopolist is thinking about charging students a 10% higher price.  The quantity demanded by the students would fall by  %. Who should the monopolist charge more? mention faculty and students and how much

Which of the following statements is false? Select one: a. Ceteris paribus, a monopolist charges the same price as a perfect competitor. b. All of the other statements are false. c. The monopolist never takes a loss. d. All monopolies are created by the government.

Table 15-6  A monopolist faces the following demand curve:  Quantity  Price 1  $15 2  $12 3  $9 4  $6 5  $3 30. Refer to Table 15-6. What is the marginal revenue from the sale of the 3rd unit?  -$3  $3  $9  $24