Fill in order details

  • Submit your instructions
    to writers for free!
  • Start receiving proposals from writers

Order bidding

  • Chat with preferred expert writers
  • Request a preview of your paper
    from them for free

Choose writer & reserve money

  • Hire the most suitable writer to
    complete your order
  • Reserve money for paying

Work process

  • View the progress
  • Give suggestions
  • Pay only for approved parts

Maui Macadamia Inc. has a monopoly

Question
  1. Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows:
  2. P = 360 – 4Q MR = 360 – 8Q MC = 4Q
  3. Refer to Scenario 10.9. At the profit maximizing level of output, what is the level of consumer surplus?
  4. 4,800
  5. 2,700
  6. 0
  7. 3,600
  8. 1,800

5 points

QUESTION 2

  1. If a monopoly can produce a good at zero marginal cost, then its Lerner Index is
  2. zero.
  3. one.
  4. infinity.
  5. undetermined.

5 points

QUESTION 3

  1. You work as a marketing analyst for a pharmaceutical firm, and you are trying to gather information about the marginal cost of production for a competing firm. You know that they have a patent on a popular medication that sells for $20 per dose, and you believe the elasticity of demand for this product is roughly -4. Assuming the competing firm acts as a profit-maximizing monopolist, what is the competing firm’s approximate marginal cost of production?
  2. $10 per dose
  3. $12.50 per dose
  4. $20 per dose
  5. $15 per dose

5 points

QUESTION 4

  1. A monopoly sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the implicit demand elasticity is
  2. -5.0.
  3. -1.25.
  4. -0.8.
  5. -0.2.

5 points

QUESTION 5

  1. Which factors determine the firm’s elasticity of demand?
  2. Number of firms and the nature of interaction among firms
  3. Elasticity of market demand, number of firms, and the nature of interaction among firms
  4. Elasticity of market demand and number of firms
  5. none of the above

5 points

QUESTION 6

  1. Figure 10.2
  2. Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the deadweight loss is the area:
  3. GFH.
  4. FEH.
  5. GEH.
  6. QmEHQc.
  7. none of the above

5 points

QUESTION 7

  1. The monopolist that maximizes profit
  2. imposes a cost on society because the selling price is equal to marginal cost.
  3. imposes a cost on society because the selling price is above marginal cost.
  4. does not impose a cost on society because the selling price is above marginal cost.
  5. does not impose a cost on society because price is equal to marginal cost.

5 points

QUESTION 8

  1. Optimal price regulation sets price equal to
  2. average variable cost.
  3. average cost.
  4. marginal cost.
  5. minimum average cost.

5 points

QUESTION 9

  1. The demand curve and marginal revenue curve for red rubber balls are given as follows:
  2. Q = 16 – P MR = 16 – 2Q
  3. What level of output maximizes profit?
  4. 5.5
  5. 0
  6. 6
  7. 4
  8. B, C and D all maximize profit.

What our customers say
_____

[testimonialrecent set="1"]