Refer to Figure 15 3 What is likely to happen to this monopoly in the long run

Refer to figure 15 3 what is likely to happen to this

This preview shows page 4 out of 4 pages.

75)Refer to Figure 15-3.What is likely to happen to this monopoly in the long run?A) It will be regulated by the government because of its excess profits.B) New firms will enter the market to eliminate its profits.C) It will expand its output to take advantage of economies of scale so as to further increase itsprofit.D) As long as there are entry barriers, this firm will continue to enjoy economic profits.Answer: D75)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 SkillsTRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.76) If a monopolistʹs price is $50 at the output where marginal revenue equals marginal cost andaverage total cost is $43, then the average profit is $7.76)Answer:TrueFalseDiff: 2Page Ref: 497/497Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills77) If a monopolistʹs marginal revenue is $15 per unit and its marginal cost is $25, then to maximizeprofit the firm should decrease output.77)Answer:TrueFalseDiff: 2Page Ref: 497/497Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Analytic Skills22

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture