What is the short-run condition for the monopolist

Assignment Help Business Economics

Reference no: EM131173824

A pure monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is $3.00. What is the short-run condition for the monopolist and what output changes would you recommend?

Reference no: EM131173824

Questions Cloud

Costs of building capacity are mostly fixed : For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.

Public and private security concerns often differ : When it comes to CIKR protection, public and private security concerns often differ. Do you agree or disagree with this statement? What are the differences?

How does that transaction influence GDP : You just bought a 10-year-old house. The house is located in a expensive neighborhood. You do have to do some repairs. How does that transaction influence GDP? If the house is purchased with the assistance of a real estate agent, is this payment incl..

What output will the monopolist produce : What is the short-run condition for the monopolist. In the following table are demand and cost data for a pure monopolist. What output will the monopolist produce? What total profit ill the monopolist receive at the profit-maximizing level of output?

What is the short-run condition for the monopolist : A pure monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is $3.00. What is the..

Consider the heckscher-ohlin model : Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. America is skilled-labor abundant..

What is the opportunity cost of beef in each country : Does either country have an absolute advantage in the production of wheat or beef? Explain. What is the opportunity cost of wheat in each country? What is the opportunity cost of beef in each country?

Use the aggregate demandaggregate supply framework : In 18 months from October 2007 to March 2009, Dow Jones Industrial Average declined by more than 50 percent. Use the aggregate demandaggregate supply framework to discuss and show graphically how the “2008 stock market crash” might have affected infl..

Assume the short-run aggregate supply curve : Assume the short-run aggregate supply curve can be expressed algebraically as: Y = 4,500 + 3,000π and the dynamic aggregate demand curve can be written as: Y = 5,000 – 1,000π. Find the numerical value for the short-run inflation rate? Find the numeri..

User Account

All Pages