#### Question Details

I need an ECONOMICS expert to answer all questions correctly.

The profit-maximizing monopolist facing a negative-sloping demand curve will always

produce

at an output greater than the output where average total

costs are minimized.

at an output short of that output where average total costs

are minimized.

at an output equal to industry output under perfect

competition.

at an output short of that output where the profits are

maximized.

The next 4 (from 9~12) questions refer to the following table showing the total cost

schedule for a perfectly competitive firm. You need to calculate marginal costs (MC) at

Q

0

1

2

3

4

5

TC (\$)

20

45

65

100

145

195

If market price is \$40, how many units of output will the firm produce for profitmaximization?

2 units of

output

3 units of

output

4 units of

output.

5 units of

output.

If market price is \$40, what is the maximum profit the firm can earn?

\$1

5

\$2

0

\$2

5

\$3

0

2.5 points

If market price is \$20, how many units of output will the firm produce?

If the firm shouts down, its short-run loss will be

\$65.

\$45.

\$20.

unavailable because of insufficient

information.

In the short-run cost analysis, when a firm?s marginal cost (MC) is unavailable, the best

alternative of MC is its

average total cost

(ATC)

average fixed cost

(AFC)

total variable cost

(TVC)

average variable cost

(AVC)

When we use the Lerner

index (i.e. CH 12) to define the market power for two firms which are all price searchers,

one firm charging at a price in which the demand is more elastic compared with another

firm?s implies that the firm has

no market power.

less market power .

greater market power.

the same market power as

the another.

A monopoly?s _______ changes with the shift of demand curve, when all the other

factors remain.

total cost (TC) curve

marginal cost (MC)

curve

average cost (AC)

curve

marginal revenue (MR)

curve

The Prisoner?s Dilemma 2X2 game can be used to explain why oligopolists

tend easily to achieve collusion in games.

choose the best strategy to benefit the

whole industry.

are suspicious that other players may

double cross them.

can rely on cooperative behavior by all

parties.

Which of the following profit-maximizing equilibrium condition is correct for a monopoly

with positive profit?

P = ATC = MR =

MC

P &gt; ATC &gt; MR &gt;

MC

P &gt; ATC &gt; MR =

MC

P = ATC &gt; MR &gt;

MC

2.5 points

Which of the following is NOT a market characteristic for monopoly?

One firm is the only supplier of a product.

Entry into the market is blocked.

The firm can influence market price though output

decision-making.

The firm?s product has few close substitutes.

The following table shows the demand schedule for round-trip flights between Houston

Travelers

Price

QD

\$2,000

500

\$1,500

1,000

\$1,000

1,500

\$500

2,000

Suppose an airline? marginal cost per seat for the round-trip fight is \$500. For profitmaximization, the airline should charge \$_____ per round-trip (Hint: Apply the ?half-way

rule? of MR, CH 12).

500

1,00

0

1,50

0

2,00

0

Which of the following is the best definition of fixed costs?

The costs associated with capital input.

The long-run total costs paid by an

operating firm.

The short-run costs paid for labor input.

The short-run total costs paid by a

shutting-down firm.

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