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Find the equilibrium market price and quantity demanded and supplied in the absence of price controls.
Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price.
Calculate the price elasticity of demand at the monopolist's profit-maximizing price. Also calculate marginal cost at the monopolist's profit-maximizing output.
Assume that a monopolist sells a product with the cost function. How much profit does the firm earn when it charges the price that maximizes profit?
Under what conditions will a profit-maximizing monopolist and a revenue-maximizing monopolist set the same price?
How will the sunk and nonsunk fixed costs affect the firm's decisions as it tries to maximize profit in the short run?
What is the firm's profit if it operates and it maximizes profit? Should the firm continue to operate in the short run, or should it shut down? Explain.
A monopolist operates in an industry where the demand curve is given by Q = 1000 - 20P. What is the monopolist's profit-maximizing price?
What is the marginal revenue function for the firm? What is the maximum possible revenue that the firm can earn?
What is the inverse market demand curve? What is the average revenue function for a monopolist in this market?
What is a monopsonist's marginal expenditure function? Why does a monopsonist's marginal expenditure exceed the input price at positive quantities of the input?
How does a monopsonist differ from a monopolist? Could a firm be both a monopsonist and a monopolist?
What rule does a multiplant monopolist use to allocate output among its plants? Would a multiplant perfect competitor use the same rule?
A competitive, profit-maximizing firm operates at a point where its short-run average cost curve. What does this imply about the firm's economic profits?
What is the producer surplus for an individual firm? What is the producer surplus for a market when the number of firm in the industry is fixed and input price.
In a long-run perfectly competitive equilibrium, which industry will have more firms? What is economic rent? How does it differ from economic profit?
What is the shutdown price when all fixed costs are sunk? What is the shutdown price when all fixed costs are nonsunk?
Suppose that the experience curve for the production. What is your best estimate of average variable cost at the end of this five-year period?
A railroad has two types of services: freight service and passenger service. Does the provision of passenger and freight service exhibit economies of scope?
What are the requirements for Holder in Due Course status? Are the requirements for Holder in Due Course satisfied in end of chapter Case 23.6?
Each firm in the industry is currently earning zero economic profit. How many firms are in this industry, and what is the market equilibrium price?
At the equilibrium market price, each firm produces 20 units. What is the equilibrium market price, and how many firms are in this industry?
What is the short-run equilibrium price in this market? At this price, how much does each type A firm produce, and how much does each type B firm produce?
What would be the shutdown price for each firm? Explain. Draw a graph of the short-run supply schedule for this firm. Label it clearly.
The oil drilling industry consists of 60 producers. Find the market supply curve in this market, and determine the short-run equilibrium price.