|
Monopoly - Long Run Equilibrium
and Efficiency
Explain why Monopolies
earn economic profits in the long run
Draw the long run equilibrium
graph for a Monopoly
Explain why Monopolies are
inefficient in the long run and show the following on the
graph:
- the profit
maximizing quantity
- the allocatively efficient quantity
- the productively efficient quantity
Price Discrimination - How to find
the profit maximizing quantity on a table
MULTIPLE CHOICE:
10. Refer to the above data for a
nondiscriminating monopolist. This firm will
maximize its profit by producing what quantity?
A. 3 units
B. 4 units
C. 5 units
D. 6 units
11. If the above data was for a
PERFECTLY PRICE DISCRIMINATING MONOPOLIST it would maximize
its profit by producing what quantity?
A. 3 units
B. 4 units
C. 5 units
D. 6 units
12. If the above data was for a
PERFECTLY PRICE DISCRIMINATING MONOPOLIST what would its
total revenue be at the profit maximizing
quantity?
A. $ 60
B. $ 300
C. $ 400
D. zero
13. If the above data was for a
PERFECTLY PRICE DISCRIMINATING MONOPOLIST what would its
profit be at the profit maximizing quantity?
A. zero
B. $ 152
C. $ 248
D. $ 400
|
