Use the following words to fill in the blanks: price, price, economic profit, marginal benefit, greater, allocative efficiency, greater, total cost, downward, reducing, marginal cost, beneath, increase. A monopolist faces a sloping demand curve. production If the marginal revenue exceeds the marginal cost, then a monopoly firm should the market demand curve. The marginal revenue curve for a monopolist always lies The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal reverne is equal to its quantity of output. If the firm produces where MC MR, and the firm can make higher profits by The key difference with a perfectly competitive firm is that in the case of perfect competition, marginal revenue is equal to while for a monopolist, marginal revenue is not equal to the because changes in quantity of output affect the price. 3.000

Find the economic profit of a monopolist using the following information: Demand: p = 110-2Q Fixed cost: FC = 120 Marginal cost: MC = 10

The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity

A monopoly will always produce at a lower price than a firm under perfect competition if the monopolist experiences economies of scale. True or false?

1. A firm faces the following inverse demand curve: P = 500 - 0.25Q Where: Q is the monthly production P is price, measured in dollars per unit. The firm also has a total cost (TC) function of: TC = 200Q. Assuming the firm maximizes profits, answer the following: a) Assuming the firm operates as a monopolist, calculate the following: price, quantity, and profit. Graph and show the equilibrium price and quantity. b) Assuming perfect competition, what are price, quantity and profit? Show on the graph from above.

Consider a monopolist operating on a market with a downward sloping demand curve. The monopolist has a constant marginal cost and no fixed cost. At the current level of production and at the current price level, the price elasticity of demand is equal to -0.8. Assume the monopolist wishes to maximise profits.   Would we be able to say anything about whether the monopolist has chosen a price and quantity that maximise profits? Explain your answer by means of diagrams (maximum 150 words)      2. What is the price elasticity of supply in this market?

This is part 1 of a multi-part question. A monopolist faces the demand curve Q = 144 / P2, where Q is the quantity demanded and P is price. Its average variable cost is AVC = Q1/2 and its fixed cost is 25. 1. Find the monopolist's profit-maximizing quantity. (Round to at least 2 decimal places.)2. Find the monopolist's profit-maximizing price

The following table (see MS Word/PDF version of Take-Home Quiz #5 handout, page 1) shows a market demand a monopolist is facing. Use the table to answer questions #4 thru #6. Average Marginal Marginal Rev. Total Economic Quantity Price Total Rev. Rev. Cost Cost Profit (Q) (P) (TR) (AR) (MR) (MC) (TC) (II) === =====%3D ====== =====3= 1 35 35 11 11 24 64 32 29 11 22 42 3 29 11 4 17 11 23 11 11 6. 120 11 7 17 -1 11 -7 11 9 99 11 -13 11 10 80 8. 11 [Extra Credit 2 pts] Fill all blanks in the Table 1 on the Quiz #5 handout. You will receive extra credit if you submit the completed table via email. Q4. If the monopolist sells 8 units of its product, how much total revenue (TR) will it receive from the sale? 40 O 87 O 104 O 112 O 164

Given the same costs, the monopolist produces less output and charges a higher price compared to the purely competitive industry. What makes this possible for the monopolist and not the purely competitive industry? What is the impact on the society of each?

Your textbook covered 4 possible ways to deal with a natural monopoly.  Which approach would be best for consumers? Group of answer choices Regulators would force the monopolist to set its price equal to its marginal cost. Let the natural monopoly charge enough to cover its average costs and earn a normal rate of profit. Regulators would allow the monopolist to continue with no government regulation. Regulators would split the monopolist into two competing firms.