This topic contains a solution. Click here to go to the answer

Author Question: Refer to Figure 15-18 to answer the following questions. a. What quantity will this monopoly ... (Read 79 times)

bcretired

  • Hero Member
  • *****
  • Posts: 525
Refer to Figure 15-18 to answer the following questions.
 
  a. What quantity will this monopoly produce and what price will it charge?
  b. Suppose the government decides to regulate this monopoly and imposes a price ceiling of 25. Now what quantity will the monopoly produce and what price will it charge?
  c. Will every consumer who is willing to pay the ceiling price of 25 be able to buy the product? Briefly explain.

Question 2

The most liquid measure of money supply is
 
  A) M0. B) M1. C) M2. D) M3.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

amanda_14

  • Sr. Member
  • ****
  • Posts: 342
Answer to Question 1

a. To maximize profits, the monopoly will produce the quantity where marginal revenue equals marginal cost. So, the monopoly will produce 15 units and charge a price of 32.
b. Its marginal revenue curve is now a flat line at 25, running from the vertical axis to the demand curve, so the monopoly will produce 26 units and charge a price of 25.
c. The quantity demanded at a price of 25 is 34, but the quantity supplied is only 26, so there will be a shortage of 8 units, and some consumers will not be able to buy the product.

Answer to Question 2

B





 

Did you know?

More than 150,000 Americans killed by cardiovascular disease are younger than the age of 65 years.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

Less than one of every three adults with high LDL cholesterol has the condition under control. Only 48.1% with the condition are being treated for it.

For a complete list of videos, visit our video library