Figure: The Profit-Maximizing Output ARd Fi Price, cost, marginal revenue of dia

Question

Figure: The Profit-Maximizing Output ARd Fi Price, cost, marginal revenue of diamond $1,000 800 600 400 200 MC -200 -400 MR 8 10 16 20 Quantity of dlamonds 33. (Figure: The Profit-Maximizing Output and Price) Look at the figure The Profit- Maximizing Output and Price. Assume that there are no fixed costs and AC-MC S200. At the profit-maximizing output and price for a monopolist, total surplus is: A) $3,200. B) $4,800 C) $1,000. D) $1,600. 35. One of the earliest actions of antitrust policy was the breakup of A) the Standard Oil Company B) Bell Telephone. C) Microsoft. D) IBM 35. One of the earliest actions of antitrust policy was the breakup of A) the Standard Oil Company. B) Bell Telephone. C) Microsoft. D) IBM 36. In the past, most of the cars sold in the United States were produced by the Big Three auto companies. General Motors would announce its prices for the new model year first, and then the other companies would match it. This practice was an example of A) price leadership. B) noncooperative behavior. C) a kinked demand model. D) a cartel.

Explanation / Answer

33d) is correct answer

producer surplus= 1/2×(1000-600)×8

= 1/2×400×8=$1600

34/35.a) the standard oil company

it broke up in 1911 bell telephone brokeup in 1982 ibm in 1975

so the earliest is standard oil company.

36.a) is correct ans

Price leadership is when the company which is dominant sets the price and is followed by many other companies. This approach leaves leader's rival with little choice.

thanks

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.