Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

65 . If a monopolist is regulated and required to set price equal to ATC . the monopolist will earn Accounting profit but no economic

image text in transcribed
65 . If a monopolist is regulated and required to set price equal to ATC . the monopolist will earn Accounting profit but no economic profit Economic profit but no accounting profit Neither accounting profit nor economic profit A profit equal to its total cost Consider the following information for a monopoly firm . Assume that @ equals the level of output and all costs are economic costs Total Revenue = 2409 - 0.5 ( Q squared ) Marginal Revenue = 240 - Q Total cost - 2090 + 40Q + 0.5 ( Q squared ) Marginal cost = 40 + Q 6 6 . At the profit - maximizing or loss - minimizing output level economic profit would equal $5 000 $8000 $9 000 $19 000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lectures On Urban Economics

Authors: Jan K Brueckner

1st Edition

0262300311, 9780262300315

More Books

Students also viewed these Economics questions

Question

14. I no longer take people or things for granted.

Answered: 1 week ago