A monopolist maximizes profits where MC 20 and the elasticity of consumer demand is equal to 2. What price maximizes monopoly profits? Which of the following is true about a perfectly price-discriminating monopolist as compared to a single-price monopolist?
Answer and Explanation: 1 Become a Study.com member to unlock this answer! Create your account View this answer To maximize profits, a monopolist produces at the point where the marginal revenue is equal to the marginal cost (MR=MC). Consider the figure... See full ...
As a employee, you have working rights. In this lesson, you'll learn about how workers gain equal working rights through membership in a labor...
D) What is the current unemployment rate in the United States? Answer: C Topic: Microeconomics and Macroeconomics Skill: Conceptual Status: Modified 10th edition AACSB: Reflective Thinking 32) An example of a question that might be explored in microeconomics is to determine A) the number of ...
Microeconomics: Is there a difference between marginal utility and marginal benefit? What does the marginal revenue product equal when 27 workers are hired a week? What is Diminishing Marginal Productivity and how does it affect costs? Give examples seen in the real world. What ha...
Become a Study.com member to unlock this answer! Create your account View this answer For a profit-maximizing firm, the marginal revenue and marginal cost are equal and the number of units produced is where this equality is achieved. ... See full answer ...
The law of supply, then, is amicroeconomiclaw stating that, all other factors being equal, as the price of a good or service rises, the quantity that suppliers offer will rise in turn (and vice versa). When demand exceeds the available supply, the price of a product typically will rise...
The marginal benefit can be calculated from the slope of the demand curve at that point. For example, if you want to know the marginal benefit of thenthunit of a certain product, you would take the slope of the demand curve at the point where current consumption is equal ton.It can als...
Let's go back to the example of supply and demand, one of the favorite uses of ceteris paribus. Every introductory textbook onmicroeconomicsshows static supply and demand charts where prices are given to both producersand consumers; that is, at a given price, consumers demand and producers supp...
Part of the Series Practical Look At Microeconomics Investopedia / Paige McLaughlin What Is the Demand Curve? The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. In a typical ...