Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve...
Question:
Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will:
a. lower the price.
b. make an economic profit.
c. stay in operation in the short run but shut down in the long run.
d. shut down in the short run.
Marginal Revenue and Marginal Cost:
In economics, the marginal cost is the cost required to produce an additional unit of a good or service. The marginal revenue, on the other hand, is the additional revenue a firm gets from selling an additional unit of a good or service.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
- The correct answer is: b. make an economic profit.
A monopolist's profits are maximized when the marginal revenue is equal to the marginal cost...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Legal Monopoly: Definition & Examples
from
Chapter 3 / Lesson 44
6.9K
Explore the concept of a legal monopoly, including real-world examples of legal monopolies. Learn about how governments regulate and support legal monopolies.
Related to this Question
- Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will: a. make an economic profit. b. stay in operation in the short run but shut down in the long run. c. sh
- Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will a. make an economic profit. b. stay in operation in the short run, but shut down in the long run. c.
- Profit Maximization Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will: a. make an economic profit. b. stay in operation in the short run but shut down i
- Suppose a monopolist charges a price corresponding to the intersection of marginal cost and marginal revenue. If the price is between its average variable cost and average total cost curves, the firm will a. earn an economic profit. b. stay in operation i
- Suppose a monopolist charges a price corresponding to the intersection of marginal cost and marginal revenue. If the price is between its average variable cost and average total cost curves, what will happen to the firm? a. It will earn an economic profit
- Suppose a monopolist charges a price corresponding to the intersection of marginal cost and marginal revenue. If the price is between its average variable cost and average total cost curves, the firm will a. earn an economic profit. b. stay in operation
- Assume that a monopolist has a demand curve given by P=1500-4Q, and TC=100+5Q(squared) with MC=10Q. A) Graph the Demand, marginal revenue, marginal cost, and average total cost curves B) what are the
- Suppose a monopolist has a demand curve that can be expressed as P = 90 - Q. The monopolist's marginal revenue curve can be expressed as MR = 90 - 2Q. The monopolist has constant marginal costs and average total costs of $10. The profit-maximizing monopol
- Suppose a monopolist has zero marginal cost and faces the following demand curve D(p) = 10 - 2p (a) Graph the demand curve, the marginal revenue curve, and the firm's marginal cost curve. Calculate t
- Suppose a monopolist's marginal revenue equals marginal cost at an output of 100. Suppose the price is $200, and average cost is $50 at an output of 100. Which of the following is correct about the monopolist's profit? a. Profit = $250. b. Profit = $150
- Suppose the demand curve for a monopolist is Q_D = 47,000 - 50P and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's marginal cost is MC = 40 + 0.02Q and its total cost is TC = 250,000 + 40Q + 0.01Q^2. A. Find the monopolist's profit-ma
- Suppose the demand curve for a monopolist is Q_D = 47,000 - 50P and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's marginal cost is MC = 40 + 0.02Q and his total cost is TC = 250,000 + 40Q + 0.01Q^2. A.. Find the monopolist's profit-m
- Suppose the demand curve for a monopolist is QD= 47,000 - 50 P, and the marginal revenue function is MR=940 - 0.04Q. The monopolist's Marginal Cost = 40+ 0.02Q and its Total Cost = 250,000+ 40Q+ 0.01Q^2. a. Find the monopolist's profit-maximizing output
- Below is the demand curve faced by a monopolist in the short run, along with marginal cost marginal revenue average total cost and average variable cost Calculate the monopolist's economic profit or l
- 1. Suppose you are a monopolist and the downward-sloping demand curve you face takes the form: P=30-3Q: Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Profit 0 1 2
- The monopolist's profit-maximizing quantity of output is determined by the intersection of which following two curves: a. Marginal cost and demand, b. Marginal cost and marginal revenue, c. Average total cost and marginal revenue, d. Average variable
- Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If the price is between its average variable cost and average total cost curves, the firm will: Select one: a. charge a higher price.
- A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and the marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for 10 units of output is $5. What is the monopolist's
- Assume that a monopolist has a demand curve given by P = 1500 - 4Q, and T C = 100 + 5Q^2 with MC = 10Q 1. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. 2. What ar
- Assume a monopolist faces a market demand curve p = 100 - 2Q and MC = 20. a. What is the profit-maximizing level of output and price? b. Graph the marginal revenue, marginal cost, and demand curves,
- A monopolist faces the demand curve P=11-Q and the cost function is C=6Q a) Draw the demand and marginal revenue curves, and average and marginal cost curves. What are the monoplist's profit maximizi
- A monopolist can produce at a constant average (and marginal) cost of AC= MC= $5. It faces a market demand curve given by Q=53-P. a. Calculate the profit-maximizing price and quantity for this monopolist. Also, calculate its profits. b. Suppose a second
- When marginal revenue intersects marginal cost on a graph: A. a monopolist must go up to the demand curve to find the price. B. profits are maximized for a monopoly but not for a competitive firm. C. a monopolist prices the good at the point. D. a monopol
- Suppose the demand curve, for a monopolist, is QD=500-P, and the marginal revenue function is MR=500-2Q. The monopolist has a constant marginal, and average total cost of $50 per unit. a. Find the mon
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the economic profit made by this profit-maximizing monopolist? a. 0 b. 12 c. 14 d. 16 e. None of the above
- A single price monopolist faces a demand curve given by Q = 200 - 2p and has constant marginal (and average total cost) of 20. What is the economic profit made by this profit-maximizing monopolist? A. 0 B. 800 C. 3200 D. 6400 E. None of the above
- Assume a monopolist faces a market demand curve of 50 = Q - frac{1}{2}P and has a short run total cost function C = 640 + 20Q. A. What is the profit-maximizing level of output? What are the profits? Graph the marginal revenue, marginal cost, and demand cu
- Suppose a monopolist has constant average marginal cost of (AC = MC = 8) and faces demand such that QD = 100 - P. The firm's profit maximizing revenue will be: a) 736 b) 368 c) 2484 d) 3680
- Suppose a monopolist faces the following demand curve: P = 180 - 4Q. The marginal cost of production is constant and equal to $20, and there are no fixed costs. How much profit will the monopolist make if she maximizes her profit? A. Profit = $1,600 B. Pr
- Suppose the demand curve for a monopolist is P = 200 - QD. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit-maximizing output and price.
- A monopolist faces the demand curve P = 11 - Q. The firm's cost function is C = 6Q. a. Draw the demand and marginal revenue curves, and the average and marginal cost curves. What are the monopolist's
- Suppose a monopolist has a demand curve that can be expressed as P = 60 - Q. The monopolist's marginal revenue curve can be expressed as MR = 60 - 2Q. The monopolist has constant marginal costs of $20. The profit-maximizing monopolist will have a deadweig
- What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $12. The intersection of the demand curve and the marginal cost curve occurs where output is 15 units and the marginal cost is $6. a.
- A monopolist faces demand given by: P=100- .4Qd and has marginal costs given by: MC=10+.2Q a. Draw the demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will se
- Suppose a monopolist faces the following demand curve: P = 200 - 6Q The marginal cost of production is constant and equal to $20, and there are no fixed costs. (a) What is the monopolist's profit-maximizing level of output? (b) What price will the profit-
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for this monopolist? a. Q = 0, P = 10 b. Q = 2, P = 8 c. Q = 4, P = 6 d. Q = 8, P = 2 e. None of th
- Explain the demand, marginal-revenue, and the marginal-cost curves for a monopolist. Show the profit-maximizing level of output and/or the profit-maximizing price.
- What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. The a
- What is the monopolist's profit under the following conditions? The profit-maximizing price of charged goods produced is $12. The intersection of the marginal revenue and marginal cost curves occurs w output is 10 units, marginal cost is $8, and the avera
- What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $40. The intersection of the marginal-revenue and marginal cost-curves occurs where output is 20 units and marginal cost is $25. Aver
- If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce at : A elasticity of demand equals 1. B the lowest point of marginal profit curve. C All of
- Suppose that a monopolist's inverse demand curve can be expressed as: P=20000-Q(2) The monopolist's total cost curve is: TC=8000Q a). Determine the monopolist's marginal revenue curve. b). Determin
- The monopolist's profit-maximizing quantity of output is determined by the intersection of which of the following two curves: a. Marginal cost and demand, b. Marginal cost and marginal revenue, c. Average total cost and marginal revenue, d. Average variab
- Draw the demand, marginal-revenue, average-total-cost, and marginal-cost curves for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit.
- Assume that a monopolist sells a product with a total cost function TC = 1,200 + 0.5Q^2. The market demand curve is given by the equation P = 300 - Q. a) Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable? b) C
- Suppose a monopolist faces the demand curve P = 100 - 3Q. The marginal cost of production is constant and equal to $10, and there are no fixed costs. a. What is the monopolist's profit-maximizing level of output? b. What price will the profit-maximizing m
- Suppose a monopolist faces the demand curve P = 250 - 2Q. The marginal cost of production is constant and equal to $10, and there are no fixed costs. A. What is the monopolist's profit-maximizing level of output? B. What price will the profit-maximizing m
- Suppose a monopolist faces the following demand curve: P = 180 - 4Q. The marginal cost of production is constant and equal to $20, and there are no fixed costs. What price will the profit-maximizing monopolist charge? A. P = $100 B. P = $20 C. P = $60 D.
- 1. A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be a. at the minimum point of the marginal cost curve. b. less than the (total) revenue-maximizing qua
- The supply curve for a monopolist is given by: a. The firm's marginal cost curve above the average variable cost curve, b. The one point on the demand curve that corresponds to the quantity for which price is equal to marginal cost, c. The one point on t
- What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $12. The intersection of the marginal revenue and marginal cost curves occurs
- Suppose that a monopolist is maximizing its profits. Which of the following must be true? The monopolist has O maximized its total revenue. O set price equal to its average cost. O maximized the difference between marginal revenue and marginal cost.
- Assume that a monopolist sells a product with a total cost function TC = 1,200+ 0.5Q^2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P= 300 - Q. a) Find the profit-maximizing output and price for this
- Assume that a monopolist sells a product with a total cost function TC = 2,150+ 0.3Q^2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P= 240 - Q. a) Find the profit-maximizing output and price for this
- Suppose a monopolist faces the following demand curve: P=200-6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist's profit-maximizing l
- Suppose a monopolist faces consumer demand given by P = 400 - 2Q with a constant marginal cost of $80 per unit (where marginal cost equals average total cost. Assume the firm has no fixed costs). A. If the monopoly can only charge a single price, what wil
- Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find t
- Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find th
- For a monopolist that is maximizing profits, A. price equals average total cost. B. price equals marginal revenue. C. marginal revenue exceeds price. D. price exceeds marginal cost.
- A monopolist faces a demand curve given by P = 10 - Q and has a constant marginal (and average) cost of $2. What is the economic profit made by this profit-maximizing monopolist? a. $0 b. $12 c. $14 d. $16 e. none of the above
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal and average cost of 2. What is the economic profit made by this profit-maximizing monopolist? A) 0 B) 12 C) 14 D) 16
- A monopolist faces demand given by:P=100-.4Qd, and has marginal costs given by: MC=10+.2Q. a. Draw the demand, marginal revenue and marginal cost curves (include any positive intercepts). Calculate a
- Calculate the monopolist's profit under the following conditions. The intersection of the marginal revenue and marginal cost curves occurs where the output is 20 units. At an output of 20 units, the monopoly price is $15 per unit, the marginal cost is $8
- How does the monopolist determine the profit-maximizing price? A. Find where marginal cost and demand intersect, and then use the demand curve to determine the price. B. Find where marginal cost and marginal revenue cross, and then use the demand curve to
- Suppose a monopolist faces the following demand curve: P = 180 - 4Q. The marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the monopolist's profit-maximizing level of output? A. Q = 45 B. Q = 40 C. Q = 30 D. Q
- A monopolist faces a demand curve given by Q = 200 - 2p and has constant marginal (and average total cost) of 20. What is the economic profit made by this profit-maximising monopolist if they engage in perfect price discrimination? A) 0 B) 800 C) 3200 D)
- A monopolist faces demand given by: P = 100 - 0.4Qd, and has marginal costs given by: MC = 10 + 0.2Q a. Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm
- A monopolist faces a demand curve given by Q = 200 - 2p and has constant marginal (and average total cost) of 20. What is the economic profit made by this profit-maximizing monopolist if they engage in perfect price discrimination? A. 0 B. 800 C. 3200 D.
- Microeconomics At the output level that a monopolist produces to maximize profit? A. marginal cost equals marginal revenue. B. price is higher than marginal revenue. C. price equals marginal cost.
- Suppose a monopolist faces the following demand curve: P = 100 - 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. How much profit will the monopolist make if she maximizes her profit? a. $300 b. $327.50 c. $825 d
- Suppose that a monopolist faces a demand curve: Q^ D = 3375P^{ -3} They have constant marginal costs: MC = 10. a) What is the price elasticity of demand? b) What is the monopoly price? c) What is the markup over marginal cost? How is this related to th
- Suppose a monopolist faces the following demand curve: P = 100 - 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What price will the profit maximizing monopolist charge? a. $100 b. $55 c. $45 d. $15 e. $10 f. No
- A monopolist can produce its output at a constant average and constant marginal cost of ATC = MC = 5. The monopoly faces a demand curve given by the function Q = 53 - P and a marginal revenue curve that is given by MR = 53 - 2Q. a. Draw the firm's demand
- In monopolistic competition, profit is maximized by producing so that marginal revenue: A) equals price. B) equals average total cost but not marginal cost. C) equals marginal cost and which are less than price. D) is negative. E) equals marginal cost and
- In the profit-maximizing monopolist sets it price: A. higher than a competitive market would. B. equal to marginal cost. C. where marginal costs equals marginal revenue. D. at whatever price it wants
- Suppose that you are a monopolist who produces gizmos, Z, with the total cost function C(Z) = F + 50Z, where F represents the firm's fixed cost. Your marginal cost is MC = 50. Suppose also that there
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the economic profit made by this profit-maximizing monopolist if they engage in perfect price discrimination? a. 32 b. 64 c. 100 d. 121 e. None of
- A monopolist maximizes profit by: a. charging a price that equals its marginal cost. b. producing a level of output where marginal revenue equals marginal cost. c. charging the highest possible price on the demand curve. d. charging a price equal to the a
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for the monopolist? A) Q = 0, P = 10 B) Q = 2, P = 8 C) Q = 4, P = 6 D) Q = 8, P = 2 E) None of
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for this monopolist? (a) Q = 0, P = 10. (b) Q = 2, P = 8. (c) Q = 4, P = 6. (d) Q = 8, P = 2. (
- Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will a. stay in operation in the short run. b. earn an economic profit. c. earn an economic profit in the long run. d. shut down.
- Suppose a monopolist faces the following demand curve: P = 440 - 7Q. The long-run marginal cost of production is constant and equal to $20, and there are no fixed costs. a) What is the monopolist's profit-maximizing level of output? b) What price will
- Suppose a monopolist faces the following demand curve: P = 314 - 7Q. The long-run marginal cost of production is constant and equal to $20. a. What is the monopolist's profit-maximizing level of output? b. What price will the profit-maximizing monopolist
- To maximize profit, a natural monopolist produces the level of output at which: a. marginal cost equals the minimum of the long-run average total cost. b. price equals average total cost. c. marginal revenue equals marginal cost. d. all of the above
- Both a perfectly competitive firm and a monopolist a. always earn an economic profit. b. maximize profit by setting marginal cost equal to marginal revenue. c. maximize profit by setting marginal cost equal to average total cost. d. are price takers.
- Suppose a monopolist has costs to produce output of TC=1/6 Q^2+10 and faces the demand curve Q=3000-3P. Find equilibrium quantity, equilibrium price, and monopoly profit.
- Suppose a monopolist can sell to two different customers with demand curves: Q_1 = 24-P_1; Q_2 = 24- 2P_2; The monopolist has a constant marginal cost of C = 6. a. Suppose the monopolist can charge different prices across customers. Calculate the profit
- If marginal costs are constant at $6, what is the profit-maximizing monopolist price?
- Suppose a monopolist faces the following demand curve: P = 200 - 6Q The marginal cost of production is constant and equal to $20, and there are no fixed costs. (a) How much profit will the monopolist make if she maximizes her profit? (b) What would be t
- Suppose a monopolist is characterized as follows: P = 1200-6Qdemand curve for the monopolist, C = 8600 +32Q + Q^2 total cost function for the monopolist, MC =32 + 2Q marginal cost function for the monopolist. a. To maximize its profit, the monopolist s
- A monopolist faces demand P = 10 - Q. It has costs C(Q) = 2Q. It can perfectly price discriminate. a. What is its marginal revenue curve? Graph the demand curve. b. Derive the profit maximizing outpu
- Assume that a monopolist faces a demand curve for its product given by: p=80-2q Further assume that the firm's cost function is: TC=440+8q Using calculus and formulas to find a solution, how much output should the firm produce at the optimal price? Rou
- A monopolist has costs C(Q)=5Q. It has one consumer whose inverse demand is P=35-Q. a. Derive the monopolist's marginal cost and average cost. Graph the demand and marginal cost curve. b. Derive the p
- Consider a monopolist that produces a good at a constant marginal and average cost of 5$. The market demand is given by p = 53 - Q A) calculate the monopolists' profit at the profit-maximizing equilibrium
- For a monopolist, marginal revenue is less than price, which means that profit maximisation will result in (blank) also being less than price. (a) average revenue (b) marginal cost (c) total revenue (d) total cost (e) average cost
- Assume that a monopolist's marginal cost is $10 and the elasticity of demand is -2. We can conclude that the firm's profit maximizing price is approximately a. $20 b. $5. c. $10. d. The answer cannot be determined without additional information.
- Suppose a monopolist faces the demand curve P = 164 - 1Q. The monopolist's marginal costs are a constant $22 and they have fixed costs equal to $132. Given this information, what will the profit-maximizing price be for this monopolist? Round answer to two
- Both a perfectly competitive firm and a monopolist a. always earn an economic profit. b. maximize profit by setting marginal cost equal to marginal revenue. c. maximize profit by setting marginal cost equal to the average total cost. d. are price take
Explore our homework questions and answers library
Browse
by subject