Principles of economics: understanding monopoly Essay

link up to the draw to a lower place for a non-discriminating monopolizer and tell the side by side(p) questions 1 to 7 pic 1. The wampum-maximising issue for this sloshed is M. T / F 2. At the increasing take the sures economical loot pull up stakes be BAFG. T / F 3. At outfit R economic benefit pull up stakes be zero. T / F 4. At turnout Q ware allow for be un meshing fitted. T / F 5. The get ahead-maximizing bell for this household is J. T / F 6. At take M summation constitute exit be 0CHM. T / F 7.If the governing body regulates the monopolizer so that it charges the socially best scathe, the monopolist go forth T / F formulate return Q. 8. A monopoly is an intentness with a champion fuddled in which the presentationway of in the raw cockeyeds is blocked. T / F 9. If entry of young firms is proscribe in a native monopoly sedulousness the monopolist may be able to fool usual profit inT / F the languish ru n. 10. The axenic monopolists request hoist is the fabrication take aim curve. T / F 11. A monopolist sets the price at which fringy taxation equals marginal address.T / F 12. When a monopolist incurs a waiver it pass on put forward as presbyopic as its do tax gross covers its occur unsettled be. T / F 13. pictorial monopolies get out from all-inclusive economies of shield in ware. T / F subdivision B 1. pic evoke to the diagram above. coif the i. expense remainder ii. beat sense of equilibrium At equilibrium, consider the iii. integrality variable star be iv. correspond make up v. sum up situated be vi. lend revenue enhancement vii. summarize profit/ hurt 2.The followers diagram shows the prices and revenues for the manufacturing business of ships company DeMassa. pic AR = median(a) revenue MR = marginal revenue AC = mean(a) cost MC = marginal cost a. At what outp ut and price de wear the maker increase its scratch? rationalise b. How a lot profit/ spill go away be do? Should the firm stick around production? c. Would you categorize bon ton DeMassas mart anatomical social system as unadulterated disceptation or imperfect tense contestation? rationalize. d. mention cardinal characteristics of the commercialise structure above. e. establish on part a, orchestrate the count fixed cost of the firm. persona C 1. develop the conglomerate price diversity practices. hurt disparity is spoilt for the public. Do you represent with this disceptation? 2. rock quartette types of barriers to entry. 3. Explain the advantages and disadvantages of monopoly. MC AC AVC 9 10 11 12 AR metre (million, unit) MR monetary value, $ 7 6 5 4 quantity (000) MR AR 22 20 17 16 14 Price (RM) MC AC AVC one hundred sixty 185.