Thursday
April 17, 2014

Homework Help: Economics

Posted by Sammy on Tuesday, December 5, 2006 at 6:32pm.

50. In both monopolistic competition and non-price-discriminating monopoly, isn't the marginal revenue curve lies below the demand curve?

51. A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. This firm should ______ quantity and ______ price to increase profit or reduce losses.
Wouldn't the answer be decrease quantity and increase price?

52. A monopolistically competitive firm is producing an output level where marginal revenue is less than marginal cost. This firm should _____ quantity and _____ price to increase profit or reduce loss.
Wouldn't it be decrease quantity and increase price?

50) you are right

51) No. if MR>MC, the monopolist should increase quantity and decrease price.

52) No. this is just the opposit of 51.

Draw a graph of a monopolist. for 51, select a point where MR>MC. What direction is the optimal point with respect to quantity and price?


Thanks for the information.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

Microeconomics - "In both monopoly and perfect competition the profit maximising...
Econ - If a pure monopolist can price discriminate by separating buyers into two...
Economics - For the following characteristic say whether it describes a ...
Economics - A firm is currently producing in the elastic portion of its demand ...
economics - suppose a competitive market consists of identical firms with a ...
Economics - 5. (Ch. 17 # 5) Sparkle is one firm of many in the market for ...
Economics - Heres one IM SURE economist will enjoy... Always saying MC = MR :) ...
economics - The graph on the left shows the short-run marginal cost curve for a ...
economics - A monopoly firm is different from a competitive firm in that A. ...
Managerial Economics--Help! - I just need help in reviewing my answers...they ...

Search
Members