QUESTION 7 Many companies commit to the use of one type of operating system for their computers, for example the use of Microsoft Office. From the perspective of the office software industry, what type of barrier to entry does this represent? O 1. supply-side economies of scale O 2. Customer switching costs O 3. Demand-side economies of scale O 4. Capital requirements

QUESTION 7 Many companies commit to the use of one type of operating system for their computers, for example the use of Microsoft Office. From the perspective of the office software industry, what type of barrier to entry does this represent? O 1. supply-side economies of scale O 2. Customer switching costs O 3. Demand-side economies of scale O 4. Capital requirements

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...

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Consider the case of a manufacturing company which produces and sells brand pens. The selling price is $20 per pen, the total fixed operating cost is $2 million, and the variable cost per unit is $10, the total fixed financing cost is $500,000. How many pens should the company sells so it would neither make a profit or loss? O a. 4,000,000 O b. 20,000,000 O c. 200,000 O d. 25,000 O e. 2,500,000
7. A car manufacturer builds both left-hand and right-hand drive cars. It estimates that its costs and the demand faced in each of these respective markets can be modelled by the functions below P1 = 520 – 3Q1 P, = 720 – 4Q2 - TC = 100Q1 + 120Q2 + 4Q1Q2 What is the maximum profit the firm could make? O 24300 O 24800 25300 25800 26500 O0000
When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as necessary to keep operating and maximize profits O b. if the average variable cost is above its short run price O c. if the average cost is less than price O d. If the short run price is below its average fixed costs
TPrice - Marginal Cost 40 30 20 Demand 100 150 200 Quaxtity Marginal Revenue 200 units of output and a price of $20 per unit 100 units of output and a price of $20 per unit O 200 units of output and a price of $40 per unit O 100 units of output and a price of $40 per unit O 150 units of output and a price of $30 per unit
You own a firm in a perfectly competitive industry producing and selling gold recklaces. You know your costs (see table below) and the set market price $100. TC TFC TVC MC 150 100 50 50 170 100 70 20 200 100 100 30 250 100 150 50 350 100 250 100 500 100 400 150 700 100 600 200 8. 1000 100 900 300 What is profit at the profit maximizing quantity? O Profit 0 O Profit 500 O Profit 150 O Profit 50
q 0 1 2 3 4 5 6 TFC $5 5 5 5 5 5 5 TVC $0 3 LO 5 9 16 25 36 MC - $3 2 4 7 9 11 P = MR $5 5 5 5 LO 5 5 5 A profit-maximizing firm should produce a quantity of TR $0 5 10 15 20 25 30 TC $5 8 10 14 21 30 41 Profit $-5 - 3 0 1 - 5 11 units. (Enter your response as a whole number.)
Economic profit is Select one: O a. O b. equal to accounting profit equal to total revenue minus explicit costs O c. equal to total revenue minus both implicit and explicit costs O d. always greater than accounting profit
(Figure: Price and Quantity V) At the profit-maximizing output level, this firm earns a profit of: Price ($) 10 9 8 O $48. O $60. 7 6 5- 732- 4 3 O $60. 2 1 MC L O $20. 0 2 4 6 -8 ATC D 10 12 14 16 18 20 Quantity
A natural monopoly exists when O producing a large output has significantly lower marginal cost than producing a small output. the good produced by a monopoly is classified as a natural product. exploitative business tactics are used to force other companies out of the market illegally. O the monopoly-level of market power develops naturally due to the company's high product quality.
Instructions: Enter your answers as a whole number. a. Suppose the firm has the ability to be a price maker. What is the profit-maximizing level of output and price? The firm should charge $1 and will sell meals. b. What will be the firm's profit if the profit-maximizing level of output is produced?
Which of the following statements about the firm depicted in the diagram is true? O A. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. O B. The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits. OC. The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. O D. The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. Price and cost per unit 905 70 59 35 20 0 MA 580 835 1,740 1,900 2,204 MC Demand ATC Quantity
The monopolist's total revenue equals Price, cost, marginal revenue of diamond $100 60 20 MC ATC A. 10 -20 MR -40 Quantity of diamonds $80 O $160 O $240 O $300 O $480 00 C)