b.What is the total revenue at the profit-maximizing output level?c.What is the total cost at the profit-maximizing output level?d.What is the profit?e.What is the profit per unit (average profit) at the profit-maximizing output level?f.If this industry was organized as a perfectly competitive industry, what would be theprofit-maximizing price and quantity?83)Answer: a.Quantity=50; price=32b.Total revenue=50×$32=$1,600c.Total cost=50×$20=$1,000d.Profit=$1,600-$1,000=$600e.Profit per unit=$32-$20=$12f.If purely competitive, quantity=80; price=$22Diff: 3Page Ref: 497-498/497-498Topic: Profit MaximizationLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and howpublic policies affect monopoliesAACSB: Reflective Thinking24
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.84) Economic efficiency in a free market occurs whenA) the sum of consumer surplus and producer surplus is maximized.B) producer surplus is maximized.C) consumer surplus is maximized.D) price is as low as possible.Answer: A84)Diff: 2Page Ref: 500/500Topic: Monopoly and Economic EfficiencyLearning Outcome: Micro 7: Discuss the effects of consumer and producer surpluses in a marketAACSB: Reflective Thinking85) A profit maximizing monopolyʹs price is85)Diff: 2Page Ref: 500/500Topic: Comparing Monopoly and Perfect CompetitionLearning Outcome: Micro 14: Discuss production and pricing decisions within monopolies and how publicpolicies affect monopoliesAACSB: Reflective Thinking25
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