Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 21, Problem 11DQ
To determine
Industrial and social regulation.
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Students have asked these similar questions
A local magic shop has a monopoly on the production of magic wands. Each customer wants only one magic
wand, and the table below shows each customer's willingness to pay. The marginal cost of producing a wand is
$21 no matter how many are produced.
Quantity demanded
Price per wand ($)
LO
01 2 3 4 5
6 78
30 27 24 21 18 15 12 96
If the shop can charge only a single price, it will charge $
wands.
If the firm practices perfect price discrimination, it will sell a total of
earn a profit of $|
and sell
wands and
Suppose that demand is Qlp)-2000-4p. Consider the marginal revenue curve of a monopolist who operates in this market.
Assume that it is plotted on a two-axis graph in which the horizontal axis measures quantities and the vertical axis measures
marginal revenue. What is the horizontal intercept of the marginal revenue curve?
O 500
O 750
O 1000
O 2000
O 250
Question 17
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MC
ATC
26
27
26
25
24
AVC
20
MR
100
190
260 300
400
What is the optimal output and price for the prafit maximizing, nondiscriminating monopolist in the exhibit above?
O 190 and $30
O 190 and $26
O 190 and $25
O 260 and $28
O 300 and $27
D Question 18
$/9
30-
MC
ATC
28
27
AVC
26
25
24
D.
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MR
100
190
260 300
400
Total cost for this nondiscriminating monopolist at its profit-maximizing output level in the exhibit above is
O $7280
O $4750
$5700
None of the choices are correct
O $4940
D
Question 19
Why is collusian to raise prices highly unlikely among firms in perfectly competitive industries?
O All the firms in competitive industries love their consumers too much to ever collude against them
O There is only one firm in perfectly competitive industries, so whom would they collude with?
• There are too many firms in perfectly competitive industries.
O The products are too differentiated for collusion in perfectly competitive industries
3 This is a trick question because…
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