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 90 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
Gracias!

tkempin

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

An Oil-dependent World— Supply and Demand Driven An Oil-dependent World— Supply and Demand Driven
A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ... A typical distillation curve. Heavier molecules evaporate at higher temperatures and contain more ...
The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve. The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve.
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
IQ scores form what mathematicians call a normal distribution "bell curve" IQ scores form what mathematicians call a normal distribution "bell curve"
The circadian rhythm is a wave-like curve The circadian rhythm is a wave-like curve
Video: Oogenesis Animation

For a complete list of videos, visit our video library