Relative to a competitively organized industry, a monopoly is more likely to produce Select one: a. Less output, charges higher price, and earns economic profits. b. Less output, charges lower prices, and earns only a normal profit. c. More output, charges higher prices, and earns economic profits. d. Less output, charges lower prices, and earns economic profits

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8. The following figure shows the marginal revenue [MR], demand, and average cost [AC] curves for a profit-maximizing monopolist. Price a. IFA b. FGH c. AFGB d. BGEO B O G 12 C MR H EJ AC Demand Quantity The loss in welfare in the market due to the monopoly firm is

1. What are the various reasons that causes monopoly? Explain and provide an example of each. 2. Explain the characteristics of a monopoly. How it is different from a perfect competition? 3. Refer to the graph below: 105 100 - MC 95 90 АТС 85 80 75 70 65 - 60 55 50 45 + 40 + 35 30 25 20 15 10 MR Demand +++++ YTTI 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100105110115120 e In the above graph calculate the following? a. The profit maximization quantity b. Price that the monopolist will charge at that level c. Total revenue at that level d. Total cost at that level e. Profit or loss (if any) at that level

If regulators impose marginal-cost pricing on anatural monopoly, a possible problem is thata. consumers will buy more of the good than isefficient.b. consumers will buy less of the good than isefficient.c. the firm will lose money and exit the market.d. the firm will make excessive profits.

A firm is a natural monopoly if it exhibits the following as its output increases:a.decreasing marginal revenue.b.increasing marginal cost.c.decreasing average revenue.d.decreasing average total cost.

19. A monopoly is a market in which there is only one seller. This situation hurts consumers (buyers). But how, precisely? Explain the things that a monopoly does that hurt consumers.

9. Draw a linear demand curve, linear MC and MR for a monopolist. (a) Show graphically the optimal price and quantity produced. (b) How will your answer in (a) change if the demand becomes more inelastic? Will the gap between MC and p increase or decrease? (c) Show the CS, PS, and, DW L.

What will a long-run equilibrium for a monopoly most likely result in?   . a economic losses or profits and production either more or less than the amount at which costs are a minimum. b either zero or positive economic profits and production less than the amount at which costs are a minimum. c zero economic profits and production less than the amount at which costs are a minimum d economic profits and production less than the amount at which costs are a minimum.

1. For a price searching firm it's marginal revenue curve  (a). Is below it's marginal cost curve (b). Must be vertical (c). Must be horizontal (d). Is below it's a demand curve  2. The most common source of illegal Monopoly today is (a). Predatory pricing  (b). Intellectual property rights (c). Royal edict (d). Natural monopoly  3. The market demand is given by p= 420-0.05Q, vrp is the price of the good and Q is the quantity demanded at that price. The monopolist marginal revenue function in this market is  (a). MR= 210-0.05Q (b). MR= 420-0.05Q (c). MR= 420- 0.025Q (d). MR= 420-0.1Q 4. In the monopolized ( profit maximizing) market equilibrium p> MC( the price exceeds the marginal cost) this implies that  (a). The consumer surplus is equal to the producer surplus  (b). The total value of the good is maximized (c). The equilibrium is Marshall inefficient (d). The market price is equal to the market quantity  5. The market demand is given Q= 440-40P, where P is the price of the good…