This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Figure 15-18 to answer the following questions. a. What quantity will this monopoly ... (Read 38 times)

bcretired

  • Hero Member
  • *****
  • Posts: 525
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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


bcretired

  • Hero Member
  • *****
  • Posts: 525
Reply #2 on: Jun 29, 2018
Thank you :)


amanda_14

  • Sr. Member
  • ****
  • Posts: 342
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Approximately 15–25% of recognized pregnancies end in miscarriage. However, many miscarriages often occur before a woman even knows she is pregnant.

Did you know?

Stevens-Johnson syndrome and Toxic Epidermal Necrolysis syndrome are life-threatening reactions that can result in death. Complications include permanent blindness, dry-eye syndrome, lung damage, photophobia, asthma, chronic obstructive pulmonary disease, permanent loss of nail beds, scarring of mucous membranes, arthritis, and chronic fatigue syndrome. Many patients' pores scar shut, causing them to retain heat.

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages Demonstrate the Application of Triangular, Figure-Eight, and Tubular Bandages
Answer to Trig problem Answer to Trig problem
bio questions bio questions
Physics questions 3 and 5 Physics questions 3 and 5
How much voltage does the resistor drop in Figure 10-2? How much voltage does the resistor drop in Figure 10-2?
Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ... Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, ...
Video: Fermentation pathways

For a complete list of videos, visit our video library