Why is the demand curve facing a monopolist downward sloping

Reference no: EM133488440

Discussion Post: Ace Manufacturing

Ace Manufacturing produces 1,000 hammers per day. The total fixed cost for the plant is $5,000 per day, and the total variable cost is $15,000 per day. Calculate the average fixed cost, average variable cost, average total cost, and total cost at the current output level.

For mathematically-minded students, what is the algebraic relationship between the equation for output and the equation for marginal product in Exhibit 2 of Chapter 7? Explain the circumstances under which the long-run supply curve for an industry is a horizontal line. Next, explain the circumstances under which the long-run supply curve for an industry is an upward-sloping line.

• Does a Kansas wheat farmer operate in a perfectly competitive market structure? Explain.

1. Consider this statement: "A firm should increase output when it makes a profit." Do you agree or disagree? Explain.

• Suppose a perfectly competitive firm's demand curve is below its average total cost curve. Explain the conditions under which a firm continues to produce in the short run.

2. Suppose independent truckers operate in a perfectly, competitive constant-cost industry. If these firms are earning positive economic profits, what happens in the long run to the following: the price of trucking services, the industry quantity of output, and the profits of trucking firms?

• Why is the demand curve facing a monopolist downward sloping, while the demand curve facing a perfectly competitive firm is horizontal?

3. Explain why you agree or disagree with the following statements:

• "All monopolies are created by the government."

• "The monopolist charges the highest possible price."

• "The monopolist never takes a loss."

4. Explain why a monopolist would never produce in the inelastic range of the demand curve.

• Suppose the demand and cost curves for a monopolist are as shown in Exhibit 10 in Chapter 9. Explain what price the monopolist should charge and how much output it should produce.

Reference no: EM133488440

Questions Cloud

Evaluate the iso 27001 and nist 800-53 standards : Evaluate the ISO 27001 and NIST 800-53 standards , are they able to individually cover all the aspects of IT Security within an organisation

What difference between fallacy of relevance and ambiguity : What is the difference between a fallacy of relevance, a fallacy of weak induction, and a fallacy of ambiguity?

What is the frequency of coupon payments of the bond : Choose the bond that has the Last Price listed on the website. Copy the bond's information from the website. Describe the main elements of the bond

Identify three themes common to the articles : Identify three themes common to the articles and write a synthesis paper about research skills using evidence from the articles to support your themes.

Why is the demand curve facing a monopolist downward sloping : Why is the demand curve facing a monopolist downward sloping, while the demand curve facing a perfectly competitive firm is horizontal?

How does technology exist in your daily life : How does technology exist in your daily life and What devices or tech services do you use regularly and why?

How the relationship between leaders and followers may be : how the relationship between leaders and followers may be affected by each of these dimensions? Is the onus on leaders and/or followers to adapt?

How many americans remain uninsured despite the ppaca : Identify, how many Americans remain uninsured despite the PPACA (Patient Protection and Affordable Care Act), using the most current scholarly resource

What barriers or challenges have slowed the progress : What barriers or challenges have slowed the progress of advanced practice registered nursing? Identify a current legislative policy on the local or state.

User Account

All Pages