What would the problem be if the government forced a natural monopoly to set a price equal to its marginal cost? a. the firm will make excessive profits b. consumers buy less of the good than is efficient c. consumers buy more of the good than is efficient d. the firm will make losses and exit the market

A natural monopoly refers to a monopoly that is defended from direct competition by a. Control over a vital input b. A government franchise c. A patent or copyright d. Economies of scale over a broad range of output

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

Price ($ per Can) $2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 $ per can Quantity Demanded (per Day) b. monopolized market? per can 30 40 50 60 70 80 90 100 Total Revenue A If the marginal cost of supplying a soda is constant and equal to $0.50, what price will students end up paying in a. perfectly competitive market? $ 75.00 Marginal Revenue ($ per Can)

The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 140 120 100 80 60 40 20 0 10 20 30 40 Quantity per period 50 60 D MC Tools marginal revel b. What are the values of the profit-maximizing output and price? Output: Price: $ c. What are the values of output, price and total revenue when the firm's total revenue is maximized? Output: Price: $ Total revenue: $

A natural monopoly occurs when A. marginal cost is constant. B. average cost is declining. C. marginal cost is below average cost. D. All of the above are true.

How does the monopoly price compare to the competition price ? Assume all other things are equal, of course, or a comparison is meaningless. Also assume no price discrimination - just one price the monopoly can use. Assume normal shaped demand curves (not completely inelastic or elastic ) a.Monopoly price is usually higher but can also be lower. b.Monopoly price is the same as competition. c. Monopoly price is lower than competition. d.Monopoly price is higher than competition. Which one ?

1 Fill in the blank with the correct answer by typing in the box. Innovation can end a monopoly and bring - prices.

Compare the efficiency of monopoly and perfect competition. Which is more efficient? Explain your reasoning and illustrate with a hypothetical example.

Question 3: Monopoly graph. Do parts a, b., c Draw the short-run ATC, AVC, MC, MR and Demand graphs for a monopoly market. In each part, show Total Cost (TC), Total Revenue (TR), shade the profit or loss. Clearly label Q for the equilibrium quantity point and P for market price point. a. Draw a profit situation b. Draw a loss (not shutdown) situation c. Draw a monopoly and perfectly competitive industry on the same graph space. Only show equilibrium quantity and price of monopoly (Qm and Pm) and quantity and price for a perfect competition situation denoted as (Qpc and Ppc). You do not need to identify TR, TC or shade the profit in this graph.