A monopolist is a price taker. c. There are no close substitutes for a monopolist's product. d. There are many firms in a monopolized industry. e. A monopolist faces a horizontal demand curve.
Total revenue earned by the monopolist is maximum at that output level. c. Total revenue earned by the monopolist increases at an increasing rate as output increases beyond that output level.
It always earns an economic profit. The figure below shows the cost and revenue curves for a non-discriminating monopolist. The profit- maximizing output and price for a monopolist are:
Suppose a restaurant has a monopoly in a certain small town. Its rent, which is one of the several fixed costs it incurs whether it sells food or not, has gone up. In the short run, the restaurant should: a. pay the higher rent and increase menu prices.
In a monopoly, there is only one seller of the product. There is no competition in these markets because there are some barriers that are preventing other firms from entering the market.
Which of the following is true of monopoly but not true of perfect competition? Firms can potentially earn economic profits in the long run. Under marginal cost pricing by a natural monopoly, price is less than average cost.
Answer and Explanation: The correct option is (b) Price is greater than marginal cost.
Answer and Explanation: An unregulated monopoly will A. produce in the elastic range of its demand curve.
Which of the following is true under monopolistic competition in the long run? Profits are always zero.
The correct option is d. Perfect price discrimination allows the monopolist to reap the entire gains from production.
The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost: that is, MR = MC. If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output.
The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the...
What Is a Monopolist's Profit-Maximizing Level of Output? All firms maximize profits when their marginal cost is equal to the marginal product. This dollar amount should also be the selling price that maximizes profits.
A monopoly market is characterized by the profit maximizer, price maker, high barriers to entry, single seller, and price discrimination. Monopoly characteristics include profit maximizer, price maker, high barriers to entry, single seller, and price discrimination.
A monopoly is a company that exists in a market with little to no competition and can therefore set its own terms and prices when facing consumers, making them highly profitable.
An example of monopoly is when one company is the only provider of phone service in the area. An example of monopoly is when you say a cat is the only pet that can be aloof. An example of monopoly is the phone company who is the only provider of phone service in an area.