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The supply curve of a monopoly is its marginal cost curve true or false?
Flase, The suuply curve of a "perfect competition" is its marginal cost curve
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
How do you calculate monopoly price and quantity?
To calculate monopoly price and quantity, first determine the demand curve facing the monopolist, which shows the relationship between price and quantity demanded. Next, find the marginal cost (MC) of production. The monopolist sets the quantity where marginal revenue (MR) equals marginal cost (MC), as this maximizes profit. Finally, use the demand curve to find the price corresponding to that quantity.
The supply curve of a monopoly is its marginal cost curve true or false?
Flase, The suuply curve of a "perfect competition" is its marginal cost curve
What happens when the slope of the total revenue curve is equal to the slope of the total cost curve?
a. monopoly profit is maximized. b. marginal revenue equals marginal cost. c. the marginal cost curve intersects the total average cost curve. d. the total cost curve is at its minimum. e. Both A and B
Why does the marginal cost curve correspond to the supply curve?
A perfectly competitive firm's supply curve is that portion of its' marginal cost curve that lies above the minimum of the average variable cost curve. A perfectly competitive firm maximizes profit by producing the quantity of output that equates price and marginal cost. As such, the firm moves along it's marginal cost curve in response to alternative prices. Because the marginal cost curve is positively sloped due to the law of diminishing marginal returns, the firm's supply curve is also positively sloped.
Discuss equilibrium of a firm under monopoly what are the conditions of equilibrium?
when marginal revenue equal to marginal cost,when marginal cost curve cut marginal revenue curve from the below and when price is greter than average total cost
How do you calculate monopoly price and quantity?
To calculate monopoly price and quantity, first determine the demand curve facing the monopolist, which shows the relationship between price and quantity demanded. Next, find the marginal cost (MC) of production. The monopolist sets the quantity where marginal revenue (MR) equals marginal cost (MC), as this maximizes profit. Finally, use the demand curve to find the price corresponding to that quantity.
How can one identify and calculate the deadweight loss on a monopoly graph?
To identify and calculate deadweight loss on a monopoly graph, you can look for the area of the triangle between the demand curve, the supply curve, and the monopoly's marginal cost curve. This area represents the loss of economic efficiency due to the monopoly's market power. You can calculate the deadweight loss by finding the area of this triangle using the formula: 0.5 x base x height.
What happens to marginal cost after the point where it equals average variable cost?
Marginal Cost will keep increasing (have upward slope) because of the principle of diminishing marginal returns. The MC curve above the its intersection with AVC is the Supply Curve *because below minimum AVC, the firms stops production)
What does the slope of the supply curve reflect?
Rising Marginal Costs
Why monopoly has no suply curve?
Monopoly has no supply curve because the monopolist does not take price as given, but set both price and quantity from the demand curve.
How is a perfectly competitive firms marginal cost curve related to its supply curve?
a perfectly competitive firms supply curve will be the portion of the marginal cost curve which lies above the average variable cost curve (AVC)..this will be due to the firms unwillingness to supply below the price in which they could cover their variable costs
Does monopoly have a supply function?
In a monopoly, there is no traditional supply function as seen in competitive markets. A monopolist sets the quantity of output to maximize profit by equating marginal cost with marginal revenue, rather than responding to market supply and demand. The monopolist determines the price based on the demand curve for its product, which means the relationship between quantity supplied and price is not direct or linear, making the concept of a supply function less applicable.
What is a firm's short run supply curve?
A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost curve.
