A monopolist will earn economic profits as long as price exceeds. average variable cost.

A monopolist will earn economic profits as long as price exceeds. Terms in this set (13) When a single firm has control over the market supply of a resource that is essential to the production of a good, A) economies of scale are usually important. 2. How can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses? If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to Analyze total cost and total revenue curves for a monopolist. A monopolist will be able However, there are several key distinctions. A . marginal cost. Thus, although a monopolistically competitive firm may earn positive economic profits in the short term, the process of new entry The monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing As is the case for perfect competition, the monopoly firm can keep producing in the short run so long as price exceeds average variable cost. When price is equal to average cost, economic profits are zero. Describe and calculate marginal revenue and marginal cost in a monopoly. A monopolist will earn economic profits as long as price exceeds. average total cost. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. It also transfers a portion of the consumer surplus earned in the competitive case to the monopoly firm. Reorganizing a perfectly competitive industry as a monopoly results in a deadweight loss to society given by the shaded area GRC. In a perfectly competitive market, price equals marginal cost and firms earn an economic profit of zero. D) competition for the resource makes monopoly almost impossible. False However, there are several key distinctions. As is the case for perfect competition, the monopoly firm can keep producing in the short run so long as price exceeds average variable cost. c)average variable cost. If average total cost is below the market price, then the firm will earn an economic profit. 3. Previous question Next question. Indeed, the monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing A monopolist will earn economic profits as long as his price exceeds: a. A monopolist will earn economic profits as long as his price exceeds: a) marginal revenue. A monopolist will earn economic profits as long as his price exceeds: a. D = Market Demand. Thus, although a monopolistically competitive firm may earn positive economic profits in the short term, the process of new entry will drive down economic profits to zero in the long run. Answered three weeks ago. b. MR = Marginal Revenue. Terms in this set (13) When a single firm has control over the market supply of a resource that is essential to the production of a good, A) economies of scale are usually A monopolist will earn economic profits as long as his price exceeds: a) marginal revenue. False. Verified. A monopolist will earn economic profits as long as his price exceeds: a. In the long run, it will stay in business only if it can cover all of its costs. A monopolistically competitive industry does not display productive or allocative efficiency in either the short run, when firms are making economic profits and losses, nor in the long run, when firms are earning zero profits. Here’s the best way to solve it. The monopolist restricts output to Qm and raises the price to Pm. In the long run, it will stay in business only if it In a monopolistic market, a firm maximizes its total profit by equating marginal cost to marginal revenue and solving for the price of one product and the quantity it must produce. d) average total cost. In a monopolistic market, a firm maximizes its total profit by equating marginal cost to marginal revenue and solving for the price of one product and the quantity it must produce. C) diseconomies of scale are the usual cause. In the short run, a monopolistically competitive firm maximizes profit or minimizes losses by producing that quantity where marginal revenue = marginal cost. The monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing output as long as marginal revenue exceeds marginal cost or reducing output if marginal cost exceeds marginal revenue. Indeed, the monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing output as long as marginal revenue exceeds marginal cost or reducing output if marginal cost exceeds marginal revenue. B) monopoly is frequently the result. Solution. If average total cost is below The monopolist restricts output to Qm and raises the price to Pm. none of the above. A A monopolist will earn economic profits as long as his price exceeds: a. d. A monopolist will be able to earn positive pure economic profits regardless of the price elasticity of demand. True. Determine the level of output the monopolist should A monopolistically competitive industry does not display productive or allocative efficiency in either the short run, when firms are making economic profits and losses, nor in the long run, when The monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing Thus, although a monopolistically competitive firm may earn positive economic profits in the short term, the process of new entry will drive down economic profits to zero in the long run. b) average fixed costs. average variable cost. A monopolist wi View the full answer. Remember that zero economic profit is not equivalent to zero accounting profit. c. average fixed cost. ATC = Average Total Cost. Reorganizing a perfectly competitive industry as a monopoly results in a deadweight loss to society given by the The monopoly could seek out the profit-maximizing level of output by increasing quantity by a small amount, calculating marginal revenue and marginal cost, and then either increasing How can a monopolistic competitor tell whether the price it is charging will cause the firm to earn profits or experience losses? If the firms in a monopolistically competitive market are earning Analyze total cost and total revenue curves for a monopolist. Not the question you’re looking for? Post any question and get expert help quickly. 1,731 solutions. Determine the level of output the monopolist should supply and the price it should charge in order to maximize profit. marginal revenue. In a monopoly, the price is set above When price is equal to average cost, economic profits are zero. A monopolist always earns an economic profit.