Determine the profit-maximizing output and price

Assignment Help Microeconomics
Reference no: EM13867175

The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist

a.       Determine the profit-maximizing output and price. Explain. Just don't state the answer

b.      What price and output would prevail if this firm's product were sold by price-taking in a perfectly competitive market?Explain. Just don't state the answer

c.       What conclusion can draw between a firm operating as a competitor and  monopolist in terms of

i)                    Output produced

ii)                   Price charge

 

Price($)

120

 

 

 

 

 

 

MC

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

80

 

 

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

D

 

0

 

 

 

 

 

MR

 

 

 

 

 

 

0

1

2

3

4

5

6

7

8

9

10   Quantity

 

Question 7

The supply curve of a single firm under perfect competition is that portion of the MC curve above the minimum point of the AVC curve. How about the supply curve of the monopolist? Does the monopolist have a supply curve? Discuss

Reference no: EM13867175

Questions Cloud

Creating a worksheet for the weekly employee payroll data : You are the human resources manager for a company called Mighty Tech Solutions, which provides support and repair services for computer related problems. You are in the process of creating a worksheet for the weekly employee payroll data
Managing a team in any organization is a critical component : Managing a team in any organization is a critical component of the organization's success.  Team managers should therefore consider adopting effective team management strategies in order to achieve optimum performance from their employees.
Soft touch company was started several years ago : Prepare the statement of cash flows for the current year ended December 31 using the indirect method. Use the statement of cash flows to evaluate the company's cash flows.
Speed control of a dc motor : The objective of this laboratory is to study and implement speed control of a dc motor.
Determine the profit-maximizing output and price : The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist a.       Determine the profit-maximizing output and price. Explain. Just don't state the answer b.      What price and output would prevail if this firm'..
Benefits of physical wellness plan : Type of paper :Wellness PlanTopic:  Benefits of Physical Wellness plan
Calculate the average retail price of all the products : Calculate the retail price of each product, assuming a 2.3% markup of the wholesale price. Calculate the average retail price of all the products. Calculate the total value for each product (hint: use the retail price, not the wholesale price)
What is the best estimate for total mass of the rod : What is the best estimate for total mass of the rod and Determine the value of VL for a person of age 65 and determine the heat absorbed by a collector.
An estimated economic life of eight years and no residual : On January 1, 2010, Nelson Company leases certain property to Queens Company at an annual rental of $60,000 payable in advance at the beginning of each year for eight years.

Reviews

Write a Review

Microeconomics Questions & Answers

  Did pfizer violate any ethical standards

Rabi Abdullahi and other Nigerian children filed a suit in a U.S. federal district court against Pfizer, alleging a violation of a customary international law norm prohibiting involuntary medical experimentation on humans. Did Pfizer violate any e..

  Supply and demand for health care services

Evaluate the fundamental reasons why price and utilization economic factors in the healthcare setting influence competitive market status in regard to supply and demand for health care services.

  1 why do you suppose that the market clearing interest

1. why do you suppose that the market clearing interest rates on bank savings and time deposits have been rising

  Describe the terms marginal utility and diminishing

1. what assumptions about preferences imply that indifference curves have the bowed-in shape they are assumed to

  What would the equilibrium prices and quantities be

Hypothetically, if Apple and Samsung decided to collude, instead of suing and counter-suing each other, what would the equilibrium prices and quantities be? Assuming each firm keeps the profit from its own market, what are these profits?

  What is the fixed cost of running the x-ray clinic

What would the number of paying patients and federally funded seniors be if the federal funding agency raised its rate to $120 per treatment?

  Do business firms operating in competitive markets have

Do business firms operating in competitive markets have a strong incentive to serve the interest of consumers? Are “good intentions” necessary if individuals are going to engage in actions that are helpful to others? Discuss.

  Find the expected value of each projects annual after tax

as a financial consultant you have contracted with wheel industries to evaluate their procedures involving the

  Draw his budget line with respect to his labor-leisure choic

How would these two changes together affect John's desired health capital - Draw his budget line with respect to his labor-leisure choice.

  Determine the firm output and price

Under patent protection, a company has a monopoly in the production of a high tech component. Market demand is estimated to be: P = 100 - 0.2Q.

  Write down difference between medium of exchange and a

if there was no item in the economy widely accepted in return for goods and services how would transactions be made?

  Explain why is the retail market for pcs more competitive

In the article, several people in this industry complain about thinner profit margins. Can the retail market survive with the current level of profits Do you expect there will be entry of more firms into the retail market

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd