To maximize profits in the long-run

Reference no: EM13200710

A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000.

To maximize profits in the long-run, the monopolist should:

(a) Increase output and remain open
(b) Decrease output and remain open
(c) Produce the same output and remain open
(d) Shut down
(e) None of the above

Reference no: EM13200710

Questions Cloud

Why gabriella often faces a trade-off time at the beach : Gabriella often faces a trade-off between time at the beach and time working as a model. She earns $40 per hour as a model and values going to the beach at the same price. When explaining this to her parents she says.

Horizontal and vertical analysis of the balance sheets : Horizontal and vertical analysis of the Balance Sheets for the past three years and Horizontal and vertical analysis of the Income Statements for the past three years.

Decision making is uique and different from consumer buying : Discuss how organizational buying and decision making is uique and different from consumer buying. Use examples to illustrate your answers.

The economy begins in the long-run equilibrium : The economy begins in the long-run equilibrium. Then one day, the president appoints a new chairman of the Federal Reserve. This new chairman is well known for his view that inflation is not a major problem for an economy.

To maximize profits in the long-run : A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. to maximize profits in the long-run, the monopolist should do.

Find the probability that the class length : The lengths of a professor's classes has a continuous uniform distribution between 50.0 min and 52.0 min. If one such class is randomly selected, find the probability that the class length is less than 50.5 min.

What will price and output be if there is no dominant firm : What will price and output be if there is no dominant firm Now assume that there is a dominant firm, whose marginal cost is constant at $6. Derive the residual demand curve that it faces and calculate its profit-maximizing output and price.

Find the parametric equations : Find the parametric equations for the tangent line to the curve x = t^{5} - 1, y = t^{5} + 1, z = t^{3} at the point (242, 244, 27). Use the variable t for your parameter.

Machining equipment and a robotic arm : Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount.

User Account

All Pages