Normal accounting profits in monopoly market

This monopoly makes Q units and experiences as: (1) economic profits equal to 0cbQ. (2) economic losses equal to cpab. (3) more than normal accounting profits. (4) marginal cost in excess of average total cost. (5) total revenue less than total cost.

57_Market Power and Price Discrimination.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Oligopoly and Economic Welfare Assume

Assume that P = MSB and the firms in an oligopoly are in equilibrium where P>MC. This follows that: (1) P=MSC. (2) MSB>MSC. (3) MSB<MSC. (4) oligopolists will gain zero economic profit. (5) the minimum point on the LRATC curve will achieved i

Q : Motivation behind granting patent rights

Normal 0

Q : Adverse Selection problem I have a

I have a problem in economics on Adverse Selection problem. Please help me in the following question. When Sally Sleaze sells Terry Tonedeaf a low quality boom-box by advertising it as ‘top of the line’, there is a trouble of: (i) Irrational ignorance. (ii

Q : Kinked Demand by increasing price In

In this kinked demand curve model as in demonstrated, when this firm operates at point a and increases its price from P2 to P3 and its rival firms respond by increasing their prices, in that case this firm will move from point a

Q : Illustration of total revenue and

The Square-Wheeled Locomotive, the last passenger train to Flatland, Iowa, wants more total revenue. When passengers’ demands for tickets are comparatively price elastic, in that case the railroad must: (1) raise the price, but lower this when d

Q : Problem on harvesting-Production Can

Can someone help me in finding out the right answer from the given options. The speculator who purchases wheat at harvest time throughout the late falls or early on winter, contracts for its storage, and then vends the wheat afterward in the winter, spring or in summe

Q : Total variable costs of

This profit-maximizing competitive firm’s total variable costs or TVC as in illustrated figure can be computed area as: (i) 0P3fq4. (ii) P2P1de. (iii) P3P2ef. (iv) 0P2eq4. (v) aced.

Q : Externalities or public goods in purely

A purely competitive economy along with no externalities or public goods tends to be efficient since: (1) firms try to act socially responsible. (2) government planners specify the best allocation. (3) all prices approximate marginal social benefits a

Q : Workers preference of leisure The

The backward bending supply curve for the labor takes place when: (1) Firms want to hire only some quantity of labor. (2) There is a change in elasticity of the resource supply. (3) Workers prefer leisure over added income over some wage. (4) Minimum wage legislation

Q : Approximate total revenue for

For this profit-maximizing brickyard the total revenue equals approximately: (i) $600 per day. (ii) $900 per day. (iii) $1200 per day. (iv) $1530 per day.

Discover Q & A

Leading Solution Library

Avail More Than 1450016 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1960777
Asked

3,689

Active Tutors

1450016

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment