Earn an economic profit and monopolists

Assignment Help Microeconomics
Reference no: EM13799869

1) Do you think firms should earn an economic profit? Why or why not? Try to use an example.

2) Monopolists always charge the highest price possible and earn short run economic profits. Why is this? If you disagree explain.

3) The defining characteristic of oligopoly is that each firm is mutually interdependent. (Explain this and say something about the kinked demand curve.)

4) Profits are maximized at where MC = MR (explain and use an example)

5) A price-discriminating monopolist could earn more profit than a normal monopolist. (Explain why and how)

Reference no: EM13799869

Questions Cloud

Will there be any effect on gdp : Will there be any effect on GDP? on Inflation? The stock market? How is the federal funds rate set? What is central to the Fed's internal debate?
I need help finding the derivative of 4cosx : I need help finding the derivative of 4cosx2 -2cos2x. Find Derivatives of each of the trig functions separately and then subtract them?
The financial accounting foundation : The Financial Accounting Foundation
What are your ethical and legal responsibilities to ensure : Ethical standards- What are your ethical and legal responsibilities to ensure that your final report will be of the highest ethical standards
Earn an economic profit and monopolists : Do you think firms should earn an economic profit and monopolists always charge the highest price possible and earn short run economic profits. Why is this? If you disagree explain.
Discuss the content of the conversation : Discuss the content of the conversation. What was communicated in the conversation, and who were the communicators?
Find the derivative of sin3 : Find the derivative of sin3(x2 -3).Use the product rule with f(x)=sin3 and g(x)= (x2-3)
Best game productions-company background : Resource: Best Game Productions: Company Background and Business Scenario
Analyze the major developments in international politics : Analyze the major developments in international politics and how they have evolved. Assess how the major assumptions of international relations have shaped public policy.

Reviews

Write a Review

Microeconomics Questions & Answers

  What pricing policy should transportation authority adopt

What pricing policy should the transportation authority adopt and what price per ride must the public transportation authority charge to eliminate the defi cit if it cannot reduce costs?

  Analyze impact of overestimated inflation rate on economy

many economists feel the inflation rate is overstated. Analyze the impact of the overestimated inflation rate on the economy; be sure to mention which groups benefit and which groups are hurt by the inaccurate estimate of inflation

  What is the price elasticity of demand-degree of elasticity

Suppose the prices at a local golf course are as follows: $57.50 to play 18 holes. At this price, 1200 customers pay to play a game of golf each day. A rise in the price to $62.50 causes the number of consumers to decline to 800. Use the Arc Method t..

  How would you value the goodwill

Sometimes, a bidder on a work contract may bid lower than what would maximize his/her profit from the contract and the reason for that is to create goodwill (to increase expected future business from the buyer).

  Define and explain each kind of managed care organization

in the united states managed care is becoming an increasingly popular method of administering healthcare. it influences

  What are the firm economic profits

The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit.

  Determine the herfindahl-hirschman index for widget

the mallet industry is comprised of six firms of varying sizes. firm 1 has 35 percent of the market. firm 2 has 25

  Consider the following problem there are two generators in

consider the following problem there are two generators in this system and there is a load of 1000mw. there is only one

  Basic microeconomics concepts

In the competitive industry, reduction in property tax rate on fixed capital (plant) would reduce the fixed cost of all firms. This would have the following short-run effects on P, Q, and q respectively.

  What is the highest possible price per unit

From what you know about these firms' cost structures, what is the highest possible price per unit that could exist as the market price in long-run equilibrium?

  How do depreciation costs on the house deducted from income

Explain and compare these four different scenarios on how mortgage, depreciation and tax expense impacts decisions on whether or not to purchase a single family income property as an investor. Scenario 1: If the mortgage rate rises from 5% to 10%..

  Perfectly competitive market economy

Marginal productivity theory implies that in a perfectly competitive market economy - chooses its profit-maximizing quantity of capital by

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd