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

Author Question: Why would a monopolist never price in the inelastic portion of the demand curve? What will be an ... (Read 72 times)

rlane42

  • Hero Member
  • *****
  • Posts: 594
on: Jun 29, 2018
Why would a monopolist never price in the inelastic portion of the demand curve?
 
  What will be an ideal response?

Question 2

If some sellers exit a competitive market, how will this affect its equilibrium?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Fayaz00962

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 29, 2018
Answer to Question 1

Pricing in the inelastic portion of the demand curve would result in negative marginal revenue which would reduce total revenue and profits as well.

Answer to Question 2

The market supply curve in a competitive market is a horizontal summation of individual supply curves. As a result, when some sellers exit the market, the market supply curve will shift to the left. With demand remaining unchanged, this will increase the equilibrium price and reduce the equilibrium quantity sold.


rlane42

  • Member
  • Posts: 594
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

A theoretical photosynthetic response curve. A theoretical photosynthetic response curve.
Blood PH Curve Hemoglobin Blood PH Curve Hemoglobin
Attention and memory are in demand during circle time. Attention and memory are in demand during circle time.
Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ... Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ...
Hockey stick” curve Hockey stick” curve
The demand for energy is met by burning coal and other fossil fuels The demand for energy is met by burning coal and other fossil fuels
Video: Mechanisms of capillary exchange

For a complete list of videos, visit our video library