lectureAssignment14 - 1 ECONOMICS 100 Lecture...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS 100 Lecture Assignment #14 (Monopoly) Source: LR11, Chapter 10, to page 245; LR10, Chapter 10, to page 242. 1. Monopoly How do you explain the "monopoly" phenomenon i.e. that one firm can dominate a market, with “no” rivals? 2. Total, Average and Marginal Revenue Under Monopoly Conditions 2.1 In competition, average revenue (i.e. price) is equal to marginal revenue. What is the relationship in a monopoly situation? Explain this relationship. Further, in monopoly, how does marginal revenue relate to the price elasticity of demand? 2.2 If the demand schedule is given by the equation P = 10 -1Q, what is the equation for the MR schedule? Draw D and MR. 3. Industry Equilibrium in Perfect Competition and Monopoly The demand schedule for widgets per month is given below. Price ($ per ton) Q. Demanded (tons) 160 300 150 400 140 500 130 600 120 700 110 800 100 900 3.1 Widgets are initially produced by a perfectly competitive industry with 100 firms of identical size and cost conditions. Each firm has constant average costs of $120 per ton. (This assumption is made to make it easy for you to develop an industry supply curve at P = $120 per ton. In this question, focus on the industry diagram only. Note that we are being silent about the time period – SR vs LR – as this is not the main thrust of the question.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern