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Consider a monopolist where at the current level of output t

Paper help Economics Consider a monopolist where at the current level of output t

Economics

Consider a monopolist where at the current level of output t

Consider a monopolist where at the current level of output the price elasticity of demand is -0.23…. Show more Consider a monopolist where at the current level of output the price elasticity of demand is -0.23. Which of the following statements is true? A)The firm should cut output. B)This is typical for a monopolist; output should not be altered. C)The firm should increase output. D)None of the above is necessarily correct. If the monopolist is producing at a quantity where P=MC, which of the following is true? A) The monopolist is maximizing profit. B) The monopolist is not maximizing profit and should increase output. C) The monopolist is not maximizing profit and should decrease output. D) The monopolist is earning a positive profit. Suppose the marginal cost of a monopolist is constant at $8. The marginal revenue curve is given as: MR = 80 – 4Q. The profit maximizing price is A) $8. B) $48. C) $64. D) $44. Consider a monopolist producing at the profit-maximizing level of output. MR = $10, and the price elasticity of demand is -3. The firm’s profit maximizing price is approximately: A) $3.33 B) $15 C) $20 D) $30 Suppose that a monopolist’s price must fall from $8 to $7 when sales increase from 6 to 7 units of output. Marginal revenue equals: A) $1 B) $7 C) $8 D) None of the other responses is correct. 1) Consider the following market demand and supply curves for monthly basic cable service by ACME Cable: Qs = -80 + 8P Qd = 200 – 2P where P is the monthly subscription price, and Q is millions of households. A. Find the equilibrium quantity and price in a competitive market. B. Suppose ACME Cable is a monopolist with MR = 100 – Q. Calculate the size of the deadweight loss. 2)Movie Again has a business in the purchase and sale of used DVDs. Demand and marginal revenue for the local market are: P = $10 – $0.00004Q MR = DTR/DQ = $10 – $0.00008Q The are no fixed csots. Average variable costs are constant at $5 per unit. A. Calculate the monopoly price, output and profit assuming profit maximizing behavior. B. Calculate the output and profit in the used DVD market assuming perfectly competitive behavior • Show less

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