Quiz_152 - Figure15-2 53 RefertoFigure15-2.*foroutputQ, ,itshould A B C

Quiz_152 - Figure15-2 53 RefertoFigure15-2.*foroutputQ,...

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Figure 15-253)Refer to Figure 15-2.If the monopolist charges priceP* for outputQ*, in order to maximize profitor minimize loss in the short run, it should A) continue to produce because price is greater than average variable cost.B) shut down because price is less than average total cost.C) continue to produce because a monopolist always earns a profit.D) shut down because price is greater than marginal cost.Answer: A53)Diff: 2Page Ref: 497-498/497-498Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills17
Table 15 -1Quantity perDay (cases)Price per CaseTotal Cost1$16$7.002159.5031411.0041312.0051214.5061117.5071021.008925.009830.0010735.50The government of a small developing country has granted exclusive rights to Linden Enterprises for the production ofplastic syringes. Table 15-1 shows the cost and demand data for this government protected monopolist.

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