EC321

There is a monopoly firm that produces agricultural machinery. The total production cost for 11 thousand machines is $70million, and the total revenue is $175 million. At an output of 22 thousand machines, the total cost will be $105 million, while the expected total revenue will be $310 million.Determine the marginal profit the firm will receive from selling 22 thousand machines. Write the exact answer. Do not round.

175M-70M - 310M-105M= 100Million

When price is equal to 270, a monopolist can sell 10 units of output, and when price is equal to 240, a monopolist can sell 20 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

210

There is a monopoly firm that produces agricultural machinery. The total production cost for 11 thousand machines is $80 million, and the total revenue is $200million. At an output of 22 thousand machines, the total cost will be $125million, while the expected total revenue will be $355 million.Determine the marginal profit the firm will receive from selling 22 thousand machines. Write the exact answer. Do not round.

355-125=230Million 230-120M=110MILLION

There is a monopoly firm that produces agricultural machinery. The total production cost for 11 thousand machines is $60$⁢60 million, and the total revenue is $150$⁢150 million. At an output of 22 thousand machines, the total cost will be $90$⁢90 million, while the expected total revenue will be $215$⁢215 million.Determine the marginal profit the firm will receive from selling 22 thousand machines. Write the exact answer. Do not round.

65Million 215-150/2-1=65

When a monopolist produces 30units, total cost of production is $600When a monopolist produces 40units, the total cost is $800What is the firm's marginal cost? Write the exact answer. Do not round.

800-600/40-30= 20

Which statement is correct? Select the best answer.

In contrast to a perfectly competitive market, a monopoly negatively affects society because it sells a lower quantity of goods at a higher price.

In the following situation, what should the monopolist do to maximize profit? Select the best answer. A monopolist is currently producing a level of output such that marginal revenue is $63$63 and marginal cost is $21$21. The monopolist then sets a price based on demand for the current level of output.

Increase output, decrease price

n the following situation, what should the monopolist do to maximize profit? Select the best answer.A monopolist is currently producing a level of output such that marginal revenue is $141and marginal cost is $144 The monopolist then sets a price based on demand for the current level of output.

Increase price decrease output

Suppose there is a single firm in a market that was formed by a small local market with high transportation costs. What type of monopoly or barrier to entry does this describe? Select the best answer.

Natural monopoly

Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $40 The monopolist's marginal revenue is MR=200−4QMR where Q is the quantity produced. The demand curve is P=200−2QP What is the monopolist's profit-maximizing output and price? Write the exact answer. Do not round.

Qty 40 EPrice $120

When a monopolist produces 20 units, total cost of production is $200 When a monopolist produces 30 units, the total cost is $300 What is the firm's marginal cost? Write the exact answer. Do not round.

$10

Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons)Price (P)Total Revenue (TR)Total Cost (TC)11$1,100$⁢1,100$1,100$⁢1,100$900$⁢90022$1,015$⁢1,015$2,030$⁢2,030$1,010$⁢1,01033$930$⁢930$2,790$⁢2,790$1,240$⁢1,24044$845$⁢845$3,380$⁢3,380$1,580$⁢1,58055$760$⁢760$3,800$⁢3,800$2,000$⁢2,00066$675$⁢675$4,050$⁢4,050$2,600$⁢2,60077$590$⁢590$4,130$⁢4,130$3,310$⁢3,310 Determine the firm's profit-maximizing price. Write the exact answer. Do not round.

$760

Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons)Price (P)Total Revenue (TR)Total Cost (TC)11$1,000$⁢1,000$1,000$⁢1,000$710$⁢71022$905$⁢905$1,810$⁢1,810$785$⁢78533$810$⁢810$2,430$⁢2,430$875$⁢87544$715$⁢715$2,860$⁢2,860$1,070$⁢1,07055$620$⁢620$3,100$⁢3,100$1,310$⁢1,31066$525$⁢525$3,150$⁢3,150$1,650$⁢1,65077$451$⁢451$3,160$⁢3,160$2,290$⁢2,290

Based on the data in the table above, MR=MCMR=MC occurs at an output of 55 tons. Therefore, to maximize its profit, the firm must sell one ton of cement for $620

Quantity, price, total revenue, and total cost for a monopoly firm that produces cement are listed in the table below. Quantity, (Q) (tons)Price (P)Total Revenue (TR)Total Cost (TC)11$1,200$⁢1,200$1,200$⁢1,200$650$⁢65022$1,125$⁢1,125$2,250$⁢2,250$720$⁢72033$1,050$⁢1,050$3,150$⁢3,150$810$⁢81044$975$⁢975$3,900$⁢3,900$930$⁢93055$900$⁢900$4,500$⁢4,500$1,230$⁢1,23066$825$⁢825$4,950$⁢4,950$1,680$⁢1,68077$750$⁢750$5,250$⁢5,250$2,300$⁢2,300 Determine the firm's profit-maximizing price. Write the exact answer. Do not round.

Based on the data in the table above, MR=MCMR=MC occurs at an output of 66 tons. Therefore, to maximize its profit, the firm must sell one ton of cement for $825

In the following situation, what should the monopolist do to maximize profit? Select the best answer.A monopolist is currently producing a level of output such that marginal revenue is $95 and marginal cost is $27 The monopolist then sets a price based on demand for the current level of output.

Decrease price, increase production

Use this table to answer the following question:OutputTotal Revenue 1Total Revenue 2Total Cost 1Total Cost 20000002,0002,0003,0003,000111,0001,0001,0001,0002,2002,2003,0753,075221,9001,9001,9501,9502,4002,4003,2253,225332,7002,7002,8502,8502,6002,6003,4503,450443,4003,4003,6003,6002,8002,8003,7503,750554,0004,0004,2504,2503,0003,0004,1254,125664,5004,5004,6504,6503,2003,2004,5754,575774,9004,9004,9004,9003,4003,4005,1005,100885,2005,2004,8004,8003,6003,6005,7005,700995,4005,4004,5004,5003,8003,8006,3756,37510105,5005,5003,7503,7504,0004,0007,1257,12511115,5005,5002,7502,7504,2004,2007,9507,95012125,4005,4001,2001,2004,4004,4008,8508,850What should a profit-maximizing monopolist do in the short run given the columns Total Revenue 1 and Total Cost 2 and a current output of 1111? Select the best answer. Answer Keypad

Decrease qty

When price is equal to 8080, a monopolist can sell 2020 units of output, and when price is equal to 7070, a monopolist can sell 3030 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

First, calculate total revenue by multiplying price times quantity for each price-quantity combination. Then, divide the change in total revenue by the change in quantity. (2100−1600)(30−20)=50

When price is equal to 240, a monopolist can sell 20 units of output, and when price is equal to 210, a monopolist can sell 30 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

First, calculate total revenue by multiplying price times quantity for each price-quantity combination. Then, divide the change in total revenue by the change in quantity. (6300−4800)(30−20)=150

Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $20$⁢20. The monopolist's marginal revenue is MR=50−2QMR=50−2⁢Q, where Q is the quantity produced. The demand curve is P=50−1QP=50−1⁢Q. What is the monopolist's profit-maximizing output and price? Write the exact answer. Do not round.

The following answer is correct: Quantity=15Quantity=15Price=$35Price=$⁢35 This is correct because a monopolist will produce up to the point where MR=MCMR=MC, and then the monopolist's price is determined by market demand at that quantity. In this problem, MR=50−2QMR=50−2⁢Q, where Q is the quantity produced. Set MR=MCMR=MC. 20=50−2Q20=50−2⁢Q Solving for Q gives Q=15Q=15.The demand curve is P=50−1QP=50−1⁢Q, so if Q=15Q=15, P=50−1Q=$35P=50−1⁢Q=$⁢35.

Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $40 The monopolist's marginal revenue is MR=200−4Q where Q is the quantity produced. The demand curve is P=200−2Q What is the monopolist's profit-maximizing output and price? Write the exact answer. Do not round.

The following answer is correct: Quantity=40Quantity=40Price=$120Price=$⁢120 This is correct because a monopolist will produce up to the point where MR=MCMR=MC, and then the monopolist's price is determined by market demand at that quantity. In this problem, MR=200−4QMR=200−4⁢Q, where Q is the quantity produced. Set MR=MCMR=MC. 40=200−4Q40=200−4⁢Q Solving for Q gives Q=40Q=40.The demand curve is P=200−2QP=200−2⁢Q, so if Q=40Q=40, P=200−2Q=$120P=200−2⁢Q=$⁢120.

When price is equal to 8080, a monopolist can sell 2020 units of output, and when price is equal to 7070, a monopolist can sell 3030 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

This is correct because marginal revenue is the change in total revenue divided by the change in quantity.First, calculate total revenue by multiplying price times quantity for each price-quantity combination. Then, divide the change in total revenue by the change in quantity. (2100−1600)(30−20)=50

When price is equal to 180, a monopolist can sell 40 units of output, and when price is equal to 150, a monopolist can sell 50 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

You were asked to find marginal revenue for a monopolist given the following situation. When price is equal to 180, a monopolist can sell 40 units of output, and when price is equal to 150, a monopolist can sell 50 units of output. The following answer is correct: 30 3030 This is correct because marginal revenue is the change in total revenue divided by the change in quantity.First, calculate total revenue by multiplying price times quantity for each price-quantity combination. Then, divide the change in total revenue by the change in quantity. (7500−7200)(50−40)=30

When price is equal to 700, a monopolist can sell 75 units of output, and when price is equal to 600, a monopolist can sell 100 units of output.What is the firm's marginal revenue? Write the exact answer. Do not round.

You were asked to find marginal revenue for a monopolist given the following situation. When price is equal to 700700, a monopolist can sell 7575 units of output, and when price is equal to 600600, a monopolist can sell 100100 units of output. The following answer is correct: 300300 This is correct because marginal revenue is the change in total revenue divided by the change in quantity.First, calculate total revenue by multiplying price times quantity for each price-quantity combination. Then, divide the change in total revenue by the change in quantity. (60000−52500)(100−75)=300

Suppose that a monopolist has a constant marginal cost curve. That is, for each unit of output that the monopolist produces, it costs an additional $10 The monopolist's marginal revenue is MR=300−2QMR where Q is the quantity produced. The demand curve is P=300−1Q. What is the monopolist's profit-maximizing output and price? Write the exact answer. Do not round.

his is correct because a monopolist will produce up to the point where MR=MCMR=MC, and then the monopolist's price is determined by market demand at that quantity. In this problem, MR=300−2QMR=300−2⁢Q, where Q is the quantity produced. Set MR=MCMR=MC. 10=300−2Q10=300−2⁢Q Solving for Q gives Q=145Q=145.The demand curve is P=300−1QP=300−1⁢Q, so if Q=145Q=145, P=300−1Q=$155P=300−1⁢Q=$⁢155.

Use this table to answer the following question: OutputTotal Revenue 1Total Revenue 2Total Cost 1Total Cost 20000002,0002,0003,0003,000111,0001,0001,0001,0002,2002,2003,0753,075221,9001,9001,9501,9502,4002,4003,2253,225332,7002,7002,8502,8502,6002,6003,4503,450443,4003,4003,6003,6002,8002,8003,7503,750554,0004,0004,2504,2503,0003,0004,1254,125664,5004,5004,6504,6503,2003,2004,5754,575774,9004,9004,9004,9003,4003,4005,1005,100885,2005,2004,8004,8003,6003,6005,7005,700995,4005,4004,5004,5003,8003,8006,3756,37510105,5005,5003,7503,7504,0004,0007,1257,12511115,5005,5002,7502,7504,2004,2007,9507,95012125,4005,4001,2001,2004,4004,4008,8508,850 What should a profit-maximizing monopolist do in the short run given the columns Total Revenue 1 and Total Cost 1 and a current output of 22? Select the best answer.

increase quanity