Monopoly profits do NOT serve any “socially useful" purpose because: Select one: a. Each of these is a reason why monopoly profits are not socially useful. b. the monopolist's profits are not "competed away". c. the monopolist's profits do not incentivize new investment and a reallocation of resources into the market. d. entry barriers prevent new firms from entering the market to compete with the monopolist.

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?

2. A monopolist faces demand p = 10 - Q and has costs TC = 10 + 2q. a. Provide expressions for marginal revenue and marginal cost. b. Maximize the firm's profit to determine the equilibrium price, quantity, and profit. c. The monopolist faces the prospect of entry by competitor with the same cost function. If the firm enters, they will compete by choosing quantities. Does the monopolist need to worry about this entry threat? Explain. d. The government is considering a subsidy of 4 for all firms in this industry. Should the monopolist support or oppose this policy? Explain.

Q)Economics A market comprises two consumers groups: high-demand types and low-demand types. The high types have demand QH = 10 – P and low types have demand QL = 8 – P. If a monopolist has marginal cost MC = 1 + Q, what is the profit maximising price the monopolist would charge if they are not able to price discriminate? a. 5 b. 6 c. 4 d. 7

What is the profit-maximizing (equilibrium) condition that a monopolist uses to set its quantity of output? Question 8Answer a. Marginal Cost = Marginal Revenue b. Price = Marginal Revenue  c. Price = Average Cost d. Price = Marginal Cost e. Supply = Demand

When the market for a good is efficient, the good’s price is $14. When the market is controlled by a monopoly, the good’s price is $18. What is a possible value for the price of the good if there are two competing oligopolists in the market?   A. $14                    B. $18                    C. $16                     D. $19                    E. $13                                       _______

In each of the following cases, state whether the monopolists would increase or decrease output. a. MR>MC at the level of output being produced b. MR<MC at the level of output being produced

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.

2. A monopolist produces its output in two factories, whose cost curves are given by C1 (q1) = 10q and C2 (q2) demand for the firm's product is given by P = 700 – 5Q where Q is the total quantity sold by the monopolist. (a) On a diagram, illustrate the monopolist's decision about how much to produce at each factory and overall and the price to charge. Briefly explain your diagram. (b) Numerically calculate the monopolist's optimal choices for qı, q2, Q, and P. (c) Suppose that labor costs increase in Factory 1 but not in Factory 2. How should the firm change (i.e. raise, lower, or leave unchanged) each of the values you found in (b)? Your answer should be qualitative, not quantitative. 10q3 where q1 and q2 are the amounts produced at each factory. The diagram might be useful but is not necessary.

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.