Produce output by profit-maximizing monopolist

Unless this chooses to shut down since demand never exceeds average variable costs, in that case a profit-maximizing monopolist makes output where: (i) marginal revenue equals marginal costs [MR = MC]. (ii) marginal revenue minus marginal costs [MR = MC] is maximized. (iii) price minus average cost is maximized. (iv) managers' salaries are maximized. (v) price equals marginal costs [P = MC].

Hey friends please give your opinion for the problem of Economics that is given above.

View Complete Question

Related Questions in Microeconomics

Q : Differentiate project feasibility study

Differentiate between project feasibility study and project proposal?

Q : Equilibrium outputs in long-run entry

Long-run supply curve of a purely competitive industry: (w) equals the horizontal summation of all firms’ short-run supply curves. (x) reflects equilibrium outputs after entry and exit respond completely to any shifts in demand. (y) declines as

Q : Surveyors problem Surveyors sometimes

Surveyors sometimes cannot arrange a probabilistic sample and instead rely on a variety of non-probabilistic techniques, each which poses potential problems. Surveyors could: target a quota of a certain type of res

Q : Problem on Minimum Wage Sec. A :The

Sec. A:The Bureau of Labor Statistics of a small state has asked you to analyze a minimum wage policy to support unskilled workers in the State’s local economy, which is still suffering from the effects of the recession. Based on

Q : Elasticity of demand curve In which

In which form of market, the demand curve is more elastic and why? Answer: Demand curve is more elastic under monopolistic since of the availability of close substitute.

Q : Demand for Labor-Monopsony Power When

When wage discrimination is not probable for the first 40 workers this profit-maximizing organization hires, however it can wage discriminate perfectly whenever hiring all the subsequent workers, it hires a net of: (i) Forty workers at an average salary of $700 per we

Q : Law of demand is price in the law of

is price in the law of demand an absolute or relative price

Q : Normal profit Normal profit signifies

Normal profit signifies zero economic profit. Explain why?

Q : Increase of utility when marginal

Generally, as more of a good is consumed, the point is ultimately reached where the total: (1) And marginal utility of the good increase. (2) And marginal utility of good drop. (3) Utility carries on rising however marginal utility drops. (4) Utility drops and its mar

Q : Earn high incomes in purely competitive

Into a purely competitive market economy, people along with rare and valuable talents would earn high incomes due to: (w) monopsonistic exploitation. (x) interest maximization. (y) economic rent. (z) transfer payments.

Discover Q & A

Leading Solution Library

Avail More Than 1414705 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1924747
Asked

3,689

Active Tutors

1414705

Questions
Answered

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

Submit Assignment