Question

if a monopolist is producing a quantity that generates MC less than and more than profit...

if a monopolist is producing a quantity that generates MC less than and more than profit is a can be increased by increasing production be can be increased by decreasing production C is maximized or deed is maximized only if MC equals profit

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A,B,C refer to the following question A monopolist is producing iron ore. The quantity Q is...
A,B,C refer to the following question A monopolist is producing iron ore. The quantity Q is measured in tonnes of iron ore per day and can take only non-negative values. Given the current technology, the maximum level of production is Q=180. Suppose that the demand curve facing this monopolist is Q=200-1/2×P where P denotes the price of iron ore measured in dollars per tonne, and the total cost of producing iron ore is described by the function: TC=0.2×Q^2+4×Q+400 The variable...
If a monopolist is producing a quantity where marginal revenue is equal to $16 and the...
If a monopolist is producing a quantity where marginal revenue is equal to $16 and the marginal cost is equal to $12, the monopolist should ________ to maximize profits. Group of answer choices a. continue producing at the current price b. increase production and lower the price c. increase production and increase the price d. decrease production and increase the price
(Table 8.2) Firm A Firm B Quantity TR MC Quantity TR MC 99 495 7 99...
(Table 8.2) Firm A Firm B Quantity TR MC Quantity TR MC 99 495 7 99 1,683 12.25 100 500 8 100 1,700 13.05 101 505 9 101 1,717 13.95 Suppose that both firms are producing 100 units of output. If the firms want to increase profit, firm A should produce _____ output and firm B should produce _____ output. correct answer- less; more please explain the steps to getting the answer, thanks
1. Economic profit is: A) always equal to accounting profit. B) less than accounting profit if...
1. Economic profit is: A) always equal to accounting profit. B) less than accounting profit if implicit costs are zero. C) less than accounting profit if implicit costs exist. D) greater than accounting profit if implicit costs exist. 2. The price elasticity of demand for skiing lessons in New Hampshire is over 1. This means that the demand is _____ in New Hampshire. A) price inelastic B) price unit-elastic. C) perfectly price elastic D) price elastic 3. Suppose the absolute...
1. If a firm is producing such that MR<MC, they should A. release more output B....
1. If a firm is producing such that MR<MC, they should A. release more output B. release less output C. stay at this level of output 2. In a perfectly competitive market, the current market price is $12. Given a total cost function, TC(q) = 36 + 2q^2, how much quantity should a firm release to market? A. 3 B. 4 C. 5 D. 6
1. Suppose you are the only producer in the market (you are a monopolist) and want...
1. Suppose you are the only producer in the market (you are a monopolist) and want to maximize your profit. Do you prefer to be able to impose Perfect Price Discrimination or Bundling? Why? (you can only choose one pricing strategy) 2. As a firm in a competitive market, how do you find the quantity that maximizes your profit? (you know your marginal costs and market price) 3. Suppose that there is a firm with increasing marginal cost in a...
A simple monopoly will maximize its profit by producing the quantity where a. price and marginal...
A simple monopoly will maximize its profit by producing the quantity where a. price and marginal cost are equal. b. the demand curve crosses the average cost curve. c. marginal cost reaches its minimum. d. marginal revenue equals marginal cost.
A profit-maximizing dairy farm is currently producing 10,000 gallons of milk per day. The government is...
A profit-maximizing dairy farm is currently producing 10,000 gallons of milk per day. The government is considering two alternative policies. One is to give the farm a lump sum subsidy of $500 per month. The other policy is to give the farm a subsidy of $.05 per gallon of output. a. Both kinds of subsidy will increase production at this farm. b. Neither subsidy will affect production at this farm, since output is determined by profit maximization. c. Production at...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit plus economic profit c) All of the above d) None of the above 1.17 When average product is decreasing… a) Marginal product is decreasing b) Marginal product is increasing c) Marginal product equals zero d) Average product is increasing 1.18 Figure 1 diagram shows a situation of… a) Economic profit under perfect competition b) Normal profit under perfect competition c) Economic profit under monopolistic...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit...
1.16 Accounting profit is equal to… a) Total revenue less total explicit costs b) Normal profit plus economic profit c) All of the above d) None of the above 1.17 When average product is decreasing… a) Marginal product is decreasing b) Marginal product is increasing c) Marginal product equals zero d) Average product is increasing 1.18 Figure 1 diagram shows a situation of… a) Economic profit under perfect competition b) Normal profit under perfect competition c) Economic profit under monopolistic...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT