Does a monopolist have a supply curve? Explain your answer
What will be an ideal response?
A monopolist does not have a supply curve. Since monopolists are price makers, they do not vary their production based on market price. Instead, they set the market price. Like sellers in competitive markets, monopolists will produce at the point where their marginal revenue is equal to their marginal cost. But a monopolist's marginal revenue is dependent upon the negatively-sloped demand curve that it faces. Because a monopolist's production decision is based on demand, it cannot be depicted as an independent supply curve.
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For a monopolist that does not price discriminate, economic profit is maximized in the short run at a price of $140 . Marginal revenue at that output level is
a. equal to $140 b. greater than $140 c. less than $140 d. less than marginal cost e. greater than average revenue
Average total cost:
A. increases when output levels are low, then decreases as output decreases. B. is maximized when it equals marginal cost. C. is minimized when it equals average variable cost. D. decreases when output levels are low, then increases as output increases.
Equilibrium price
What will be an ideal response?
The bottom 80 percent of families in Alpha receive approximately what percentage of total income? (See Figure 33.1.)
A. 60 percent. B. 80 percent. C. 50 percent. D. 40 percent.