Question 2 Which of the following statements is true of a monopoly firm? O Amonopoly firm is a price maker and has a downward-sloping supply curve O Amonopoly firm is a price maker and has no supply curve O Amonopoly firm is a price taker and has no supply curve A monopoly firm is a price maker and has an upward-sloping supply curve

2. A monopoly sells its good in Country A, where the elasticity of demand (in absolute value) is 2, and in Country B, where the elasticity of demand (in absolute value) is 3. Its marginal cost is $20. Determine what price does the monopoly sells its good in each country if the monopolist is able to price discriminate. How and why does the price depend on the elasticity of demand?

Identify and discuss three ways in which a perfectly competitive market structure differsfrom a Monopoly.

Juan's demand for ice cream from the Ice Cream Monopoly Company is illustrated in the figure below. $ per cone 3.00 2.75 2.50 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 0 1 Juan's Demand for Ice Cream 2 3 4 5 6 8 Ice Cream Cones 9 Demand 10 11 12

By approximately how much did the price of the heart drug for babies increase when a monopoly was established?

While firms in perfect competition maximize profit by producing at a quantity where the marginal cost of producing another unit of a good is equal the the marginal revenue from producing another unit, monopoly firms will maximize profit by producing at a quantity where marginal cost of producing another unit is equal to the marginal revenue (the same as perfect competition) the marginal profit the average total cost O the price of the good 10:04 P Bi 63°F Cloudy 5/20/202 e here to search O

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Which of the following statements is not correct? Select one: A single price monopolist is more efficient than perfectly competitive market because it makes a larger profit. a. O b. A single price monopolist produces less than the competitive market. O c. A single price monopolist charges more than the competitive market. d. A single price monopolist faces a downward sloping demand curve. A single price monopolist increases produces surplus at the expense of e. consumer surplus.

Table: Prices and Demand Quantity of Hats Demanded 0 1 2345699 7 8 Price per Hat $30 XHHNARY 28 26 24 22 20 18 16 14 (Ref 27-8 Table: Prices and Demand) Use Table 27-8: Prices and Demand. The New Orleans Saints have a monopoly on Saints logo baseball hats. The Saints sell at most 1 hat to each customer, and the table shows each customer's willingness to pay. The marginal cost of producing a hat is $18, and there are no fixed costs. How much is the Saints' profit at the profit-maximizing output? O a. $18 O b. $24 O c. $12 O d. $30

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