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

Author Question: Which of the following is likely in a monopolized market? a. a price that exceeds marginal cost b. ... (Read 75 times)

RODY.ELKHALIL

  • Hero Member
  • *****
  • Posts: 591
on: Jun 30, 2018
Which of the following is likely in a monopolized market?
 a. a price that exceeds marginal cost
 b. a price that exceeds marginal revenue
 c. a welfare loss due to the restriction of output
  d. all of the above

Question 2

Discuss the relation between average variable cost (AVC) and marginal cost (MC) curves.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

karlss

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

The AVC and the MC curves depict an important relationship. At outputs less than the minimum of average variable cost (i.e., where the AVC curve is falling) marginal cost is less than average variable cost. Similarly, where the AVC curve is rising marginal cost is greater than average variable cost. Finally, if average variable cost is constant (as occurs near the minimum of AVC), it equals marginal cost. However, the reverse implications are not necessarily trueimmediately to the left of the minimum of AVC, MC is below it but the marginal cost curve itself is rising.


RODY.ELKHALIL

  • Member
  • Posts: 591
Reply 2 on: Jun 30, 2018
:D TYSM

samiel-sayed

  • Member
  • Posts: 337
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Once thought to have neurofibromatosis, Joseph Merrick (also known as "the elephant man") is now, in retrospect, thought by clinical experts to have had Proteus syndrome. This endocrine disease causes continued and abnormal growth of the bones, muscles, skin, and so on and can become completely debilitating with severe deformities occurring anywhere on the body.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes. Elle and associates investigated the cost to Datura wrightii of producing sticky leaf trichomes.
Cost Savings with an EHR System Cost Savings with an EHR System
Typical Startup Cost Categories Cont. Typical Startup Cost Categories Cont.
U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994 U.S. Subsurface Coal Mining: Output, Price, and Output per Worker-Hour, 1949–1994
Cost Accounting 14 Cost Accounting 14
Your company advertises all prices on the menu board as a final price, including HST of 13%. A ... Your company advertises all prices on the menu board as a final price, including HST of 13%. A ...
Video: The 4 steps of translation Animation

For a complete list of videos, visit our video library