In a market served by a monopoly

Assignment Help Business Economics
Reference no: EM13995825

In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. What would happen to the price in each market if the marginal cost increased from $60 to $75?

The monopoly would raise its price to $115, and the price in the perfectly competitive market would remain unchanged at $60.

The monopoly would raise its price by less than $15, and the price in the perfectly competitive market would increase to $75.

The monopoly would raise its price by $75, and the price in the perfectly competitive market would increase to $75.

The price in both markets would increase by $15.

Reference no: EM13995825

Questions Cloud

What is supply-side economics : What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories being debated today? What is supply-side economics? Does it oppose the Classical, Keynesian, or Monetarist theory? How does supply-side economics affec..
Describe how the circular-flow diagram works : Describe how the circular-flow diagram works. Name the parts of the diagram that correspond to the flow of goods and services if you were to pay $50 for a new pair of shoes at a local shop. Name the parts of the circular-flow diagram that correspond ..
Determine the value of the firm : A firm's current profits are $600,000. These profits are expected to grow indefinitely at a constant annual rate of 4 percent. If the firm's opportunity cost of funds is 7 percent, determine the value of the firm:
Free market approach to allocating scarce resources : Describe fully with many paragraphs in an essay style, the economic arguments for and against a free market approach to allocating scarce resources. Provide a unique real world (come up with them on your own) example where the free market defiantly a..
In a market served by a monopoly : In a market served by a monopoly, the marginal cost is $60 and the price is $110. In a perfectly competitive market, the marginal cost is $60. What would happen to the price in each market if the marginal cost increased from $60 to $75?
If market demand is perfectly inelastic-then a monopolist : If market demand is perfectly inelastic, then a monopolist:
Calculate a laspeyres cost-of-living index : Roberto is a senior citizen who consumes food and healthcare. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. Calculate a Las..
Calculate the change in gdp that results from a reduction : Assume that: mpc=.6 Using the multiplier, calculate the change in GDP that results from a reduction of $80 billion in Investment, under all the standard assumptions. Illustrate this shift using the Investment Demand Curve and the Investment Schedule.
Regarding the classical-keynesian and monetarist theories : Research economic debates regarding the Classical, Keynesian, and Monetarist theories. What evidence have you discovered that points to the Classical, Keynesian, and Monetarist theories being debated today? What is supply-side economics? Does it oppo..

Reviews

Write a Review

 

Business Economics Questions & Answers

  Either obtain or sustain a competitive advantage

Discuss the strategies that a particular company employed to either obtain or sustain a competitive advantage. For example, Microsoft arguably created a competitive advantage by offering a unique suite of products that now reside on many desktops. Th..

  Cousin edgar

Cousin Edgar is always thinking of the next business idea. This time, he plans to invest in buying two gas stations. He reckons American consumers have come to accept the high gasoline prices, and estimates world prices for gasoline to increase even ..

  Elucidate why does a starbucks coffeehouse face a downward

Elucidate why does a starbucks coffeehouse face a downward sloping demand curve, while a wheat farmer faces a horizontal demand curve.

  Demonstrate the impact of a government price control sett

Demonstrate the impact of a government price control set at P = $10. Demonstrate by number and in the graph. Discuss your answer.

  Purchase the machine it is currently renting

Purchase the machine it is currently renting for $150,000. This machine will require $20,000 every year in ongoing maintenance expense.

  What happens to the exchange rate-trade balance

In September 1995, Patrick Buchanan, a Republican candidate for U.S. president, proposed a 10 percent tariff on Japanese imports to the United States, a 20 percent tariff on Chinese imports to the United States, and an unspecified “social” tariff on ..

  Number of unemployed workers

Remaining group did not have jobs, except all said they would like one. 5 of this group had not looked actively for work for 3 months.

  Interest rates and exchange rates

As we observed in this chapter, central banks, rather than purposefully setting the level of the money supply, usually set a target level for a short-term interest rate by standing ready to lend or borrow whatever money people wish to hold at that in..

  Standing for free soil and free labor the republican party

Standing for "free soil" and "free labor," the Republican Party was able to appeal to northern farmers and native-born workers, but at the price of alienating many northern manufacturers. Is this True or False?

  Causes the economy to go into a recession

Explain what you think causes the economy to go into a recession. Be sure to reference the theory/school of thought you are basing your response.

  Graphically illustrate the effects of tax cut on aggregate

Explain and graphically illustrate the effects of the tax cut on aggregate output, consumption, employment and the real wage.

  Income generation and any and all constraints to growth

Write an essay about 300-400 words about Gross Domestic Product of Viet Nam : analysis of Viet Nam economy's GDP composition and growth over time, as well as an investigation of the country's basis for income generation and any and all constraints to..

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