Demand Curve and Total Cost Curve
Please study these, you will see them again.
1. Question 1 – 4 using the information presented in
question 1.
A monopoly faces the following demand curve and total cost
curve:
Q = 2400 -100P
TC = 150,000 + 6Q.
Find the profit maximizing level of price
a. P = $15
b. P = $16
c. P = $17
d. P = 19
2. Find the profit maximizing output:
a. Q = 100 units
b. Q = 900 units
c. Q = 1000 units
d. Q = 90 units
e. cannot be derived
3. The total cost (TC) of the monopolist corresponding to
the profit maximizing level of output is:
a. $150,000
b. $206,000
c. $155,400
d. impossible to determine with the given information
e. $200,000
4. The average total cost (ATC)of the firm corresponding to
the profit maximizing level of output is:
a. $166.66
b. $132.32
c. $160
d. $172.66
5 . In the long run, new firms will keep entering a
monopolistically competitive industry:
a. provided economies of scale are being realized.
b. even though losses are incurred in the short run.
c. until minimum average total cost is achieved.
d. until economic profits are zero.
Demand Curve and Total Cost Curve
Please study these, you will see them again.
1. Question 1 – 4 using the information presented in
question 1.
A monopoly faces the following demand curve and total cost
curve:
Q = 2400 -100P
TC = 150,000 + 6Q.
Find the profit maximizing level of price
a. P = $15
b. P = $16
c. P = $17
d. P = 19
2. Find the profit maximizing output:
a. Q = 100 units
b. Q = 900 units
c. Q = 1000 units
d. Q = 90 units
e. cannot be derived
3. The total cost (TC) of the monopolist corresponding to
the profit maximizing level of output is:
a. $150,000
b. $206,000
c. $155,400
d. impossible to determine with the given information
e. $200,000
4. The average total cost (ATC)of the firm corresponding to
the profit maximizing level of output is:
a. $166.66
b. $132.32
c. $160
d. $172.66
5 . In the long run, new firms will keep entering a
monopolistically competitive industry:
a. provided economies of scale are being realized.
b. even though losses are incurred in the short run.
c. until minimum average total cost is achieved.
d. until economic profits are zero.
Demand Curve and Total Cost Curve
Please study these, you will see them again.
1. Question 1 – 4 using the information presented in
question 1.
A monopoly faces the following demand curve and total cost
curve:
Q = 2400 -100P
TC = 150,000 + 6Q.
Find the profit maximizing level of price
a. P = $15
b. P = $16
c. P = $17
d. P = 19
2. Find the profit maximizing output:
a. Q = 100 units
b. Q = 900 units
c. Q = 1000 units
d. Q = 90 units
e. cannot be derived
3. The total cost (TC) of the monopolist corresponding to
the profit maximizing level of output is:
a. $150,000
b. $206,000
c. $155,400
d. impossible to determine with the given information
e. $200,000
4. The average total cost (ATC)of the firm corresponding to
the profit maximizing level of output is:
a. $166.66
b. $132.32
c. $160
d. $172.66
5 . In the long run, new firms will keep entering a
monopolistically competitive industry:
a. provided economies of scale are being realized.
b. even though losses are incurred in the short run.
c. until minimum average total cost is achieved.
d. until economic profits are zero.
Demand Curve and Total Cost Curve
Please study these, you will see them again.
1. Question 1 – 4 using the information presented in
question 1.
A monopoly faces the following demand curve and total cost
curve:
Q = 2400 -100P
TC = 150,000 + 6Q.
Find the profit maximizing level of price
a. P = $15
b. P = $16
c. P = $17
d. P = 19
2. Find the profit maximizing output:
a. Q = 100 units
b. Q = 900 units
c. Q = 1000 units
d. Q = 90 units
e. cannot be derived
3. The total cost (TC) of the monopolist corresponding to
the profit maximizing level of output is:
a. $150,000
b. $206,000
c. $155,400
d. impossible to determine with the given information
e. $200,000
4. The average total cost (ATC)of the firm corresponding to
the profit maximizing level of output is:
a. $166.66
b. $132.32
c. $160
d. $172.66
5 . In the long run, new firms will keep entering a
monopolistically competitive industry:
a. provided economies of scale are being realized.
b. even though losses are incurred in the short run.
c. until minimum average total cost is achieved.
d. until economic profits are zero.
