Quantity of production to maximise profits

Assignment Help Business Economics
Reference no: EM132504893

How should a monopoly choose its quantity of production to maximise profits? Explain why producing either less or more than the level of output at which marginal revenue equals marginal cost will reduce profits. Since a monopolist does not fear competition, what prevents it from raising its price as high as it wishes to make higher profits?

Reference no: EM132504893

Questions Cloud

Demonstrate the interrelationship of working of tps : Detail the roles of emerging computer hardware and software platforms in a management information system via an example of a real-life firm
Experience explain how e-commerce : In your own personal experience explain how E-commerce, Digital Markets and Digital Goods contributed in your life.
Indifference curves and budget constraints : A local professor is currently paying her research assistants (RAs) a constant wage of w. The research assistants are working eight hours per day.
Define third-degree price discrimination : Define third-degree price discrimination. Assuming that such discrimination between the two groups is possible, calculate the price that the monopolist
Quantity of production to maximise profits : How should a monopoly choose its quantity of production to maximise profits? Explain why producing either less or more than the level of output at which margina
Describe the unique selling proposition : Describe the unique selling proposition. How is this product superior to the competitors you identified above. Pick one of the products Coca-Cola Classic
Describe the semi-strong form of the efficient markets : Briefly describe the semi-strong form of the efficient markets hypothesis.
Compute the sample mean for each of these samples : compute the sample mean for each of these samples, draw a histgram (set the frequency parameter to FALSE) for these sample means and add a density curve to the
Explain two policies a country may implement : Explain two (2) policies a country may implement to reduce its trade deficit.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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