The figure below shows demand, marginal revenue, and short-run cost curves for a monopoly: a. How much should the firm produce? What price should it charge? b. What is the firm’s profit (loss)? Should this firm produce or shut down? Explain. c. If the firm shuts down in the short run, how much will it lose?

ssume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.

What are the economic benefits of perfect competition compared to a monopoly?

28. The following is a graph of a non-price discriminating monopoly in the short run. (a) What is the profit-maximizing level of output? (b) What is the economic profit? (c) What is the long- run equilibrium of this firm? £ P1 supernormal profit Q1 MR MC AC D=AR

Explain how a monopoly arises and distinguish between a single-price monopoly and a price-discriminating monopoly.

Correctly illustrate the following monopolies: a. A monopoly is producing at the profit-maximizing output and is earning an economic profit. b. A monopoly is producing at the profit-maximizing output and is earning normal profits.

↑ Price Price Panel B NECK D Quantity Panel A Price D Panel C D Use the figure above. Which of the following statements is correct? All the answers are correct. Price Panel B represents the typical demand curve for a perfectly competitive firm. Panel A represents the typical demand curve for a monopoly. Panel D. ⒸPanel A represents the typical demand curve for a perfectly competitive market. D

Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 10 90 15 80 20 70 25 60 30 50 35 40 900 1200 1400 1500 1500 1400 675 825 1025 1250 1500 1850 What is marginal revenue when quantity is 25? What is marginal cost when quantity is 15? If this firm is a monopoly, at what quantity will profit be maximized? If this is a perfectly competitive market, which quantity will be produced? $ 20 $ 90 Incorrect quantity: 6 Incorrect quantity: 8 Incorrect

Research the difference between pure competition and monopoly pricing. Compare and contrast the differences between the two and then explain which you would prefer if you were a shipper (you’re paying the bill) and why? Also, consider your answer if you were the carrier (you’re getting paid) and explain how you might feel differently and why?

What are the key characteristics of perfect competition? How does monopoly differ from perfect competition? Which market achieves economic efficiency? Write an example of perfect competition, and one for monopoly.