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

Author Question: What is the profit-maximizing rule for a monopolist? What will be an ideal ... (Read 63 times)

plus1

  • Hero Member
  • *****
  • Posts: 676
on: Jun 29, 2018
What is the profit-maximizing rule for a monopolist?
 
  What will be an ideal response?

Question 2

What is the relationship between the marginal benefit, value, and demand?
 
  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

diesoon

  • Sr. Member
  • ****
  • Posts: 353
Reply #1 on: Jun 29, 2018
Answer to Question 1

A profit-maximizing monopolist will continue to increase production as long as marginal revenue is greater than marginal cost. Thus, maximum profit occurs where marginal revenue is equal to marginal cost. Incidentally, it is worth noting that this profit-maximizing rule applies to all firms no matter the market structure that it operates in.

Answer to Question 2

The value of one more unit of a good is its marginal benefit. The marginal benefit of a good or service is measured by the maximum amount that consumers are willing to pay for one more unit of a good or service. The demand curve shows the maximum consumers are willing to pay for each additional unit, so the demand curve is the same as the marginal benefit curve.


plus1

  • Member
  • Posts: 676
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

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.

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
The left-hand rule states that if a coil is grasped with the left hand, the fingers will point in ... The left-hand rule states that if a coil is grasped with the left hand, the fingers will point in ...
Rule of Law and Factor Accumulation, 2009 Rule of Law and Factor Accumulation, 2009
Find derivative using quotient rule Find derivative using quotient rule
The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ... The profit, p(t), made at a fair depends on the price of the ticket, t. The profit is modelled ...
A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ... A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ...
Video: Complement Proteins Animation

For a complete list of videos, visit our video library