suppose MR=MC=&3 at an output level of $2,000 units. if a monopolist produces an
ID: 2440310 • Letter: S
Question
suppose MR=MC=&3 at an output level of $2,000 units. if a monopolist produces and stalls 2,000 units, charging a price of $6 per unit and incurring average total cost of $5 per unit the monopolist will earn profit equal to ME PRINT LAST NAME, FIRST NAME MONOPOLY A firm is a pure monopoly when: b. it is the only seller of a product that has very few close c. there are only a few other very large firms selling s it is the only seller of a unique product and barriers to entry rom entering the market inthe|ong run. the market in the long run is unrestricted. it can sell all it can produce at any price it ch prevent other sellers ery few close substitutes and entry into d. 2.Barriers to entry guarantee that a firm will always earn positive cannot be maintained in the long run because other firms w a. economic profit. b. way to enter a profitable industry are obstacles that make it impossible or unprofitable for new firms to entera market in the long run. characterize both perfectly competitive and monopoly markets. d. MC- $3 at an output level of 2,000 units. If a monopolist units, charging a price of $6 per unit and incurring average total cost of $5 per 3. Suppose MR sells 2,000 unit, the monopolist will earn profit equal to: a. $6,000. b. $4,000. c. $2,000. d. $1,000 oe discrimination allows a monopolist toExplanation / Answer
Profit = Equilibrium quantity where MR and MC are equal x (Market price - ATC)
= 2000(6-5) = $2000
Answer is c) 2000
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