Chapter 11. Homew. P Pearson MyLab an... P Course Home P Take a Test M Question 1 - Chap Chapter 11. Homework i Saved Help Save & Exit Submit Check my work Assume that a pure monopolist and a purely competitive firm have the same unit costs. Price Output 2 Profi a. PMonopoly > PCompetition points d. Monopoly > Competition g. ProfitMonopoly > b. PMonopoly Mc Graw HillChapter 11. Homework i Saved Help Save & Exit Sub Check my wor 3 Suppose a monopolist produces in a market with two distinct segments: market 1, which is denoted as M1 on the graph, and market 2, denoted as M2. The firm's marginal and average costs are $20. 2 points $120 $110 $100 eBook $90 $80 Print $70 Price ($) $60 PriceM1 MRM1 $50 References $40 PriceM2 . MRM $30 MC = $20 $20 $10 Demandyz DemandM1 10 0 30 0 50 0 100 170 120 Quantity Instructions: Enter your answers as a whole number. a. What is the firm's profit in market 1? $ b. What is the firm's profit in market 2? $ c. In which market is demand more elastic? (Click to select) ! Mc Grav HillChapter 11. Homework i Saved Help Save & Exit Submit Check my work 4 Suppose that a monopoly firm can segregate its buyers into two different groups to which it can charge two different prices. To maximize profit, the monopoly should charge a higher price to the group that has: 2 points the lower elasticity of demand. the higher elasticity of demand. richer members. eBook Print References Next > Mc Graw HillCourse Home P Take a Test M Question 6 - CH Chapter 11. Homework i Saved Help Save & Exit Submit 6 Check my work Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. 2 points Output TC MC ATC 25,000 $100,000 $0.50 50,000 150,000 1.00 eBook 75,000 187,500 2.50 100,000 275,500 3.00 Print References Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? (Click to select) 4 c. Suppose that the market price for a bottle of vitamins is $2.5. At that price the total market quantity demanded is 75,000,000 bottles. How many firms will be in this industry?firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.5 is only 75,000. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? (Click to select) 4 Mc Graw HillP Course Home P Take a Test M Question 7 - C Chapter 11. Homework Saved Help Save & Exit Submit 7 Check my work A new production technology for making vitamins is invented by a college professor who decides not to patent it. Thus, it is available for anybody to copy and use. The TC per bottle for production up to 100,000 bottles per day is given in the following table. 2 points Output TC ATC 25,000 $100,000.00 50,000 120,000.00 eBook 75,000 125,000.00 100,000 130,000.00 Print References Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as a whole number. a. What is ATC for each level of output listed in the table? Enter your answers in the table above. b. Suppose that for each 25,000-bottle per day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $135,000 and 150,000 bottles per day would generate total costs of $140,000). Are there economies of scale at all levels of output? (Click to select) c. Suppose that the price of a bottle of vitamins is $2.33. At that price, the total quantity demanded by consumers is 75,000,000 bottles. How many firms will be in this industry? firm(s) d. Suppose that, instead, the market quantity demanded at a price of $2.33 is only 75,000. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? (Click to select) 4 f. Compare your answer to part d of this problem with your answer to part d of problem 4. Do Mc Graw HillChapter 11, Homew... P Pearson MyLab an... P Course Home P Take a Test M Question 7 - Ch Chapter 11. Homework i Saved Help Save & Exit Submit 7 Check my work Output TC ATC 25,000 $100,000.00 50,000 120,000.00 2 75,000 125,000.00 points 100,000 130,000.00 Book Print Instructions: In part a, round your answers to 2 decimal places. In parts c and d, enter your answers as a whole number. References a. What is ATC for each level of output listed in the table? Enter your answers in the table above. b. Suppose that for each 25,000-bottle per day increase in production above 100,000 bottles per day, TC increases by $5,000 (so that, for instance, 125,000 bottles per day would generate total costs of $135,000 and 150,000 bottles per day would generate total costs of $140,000). Are there economies of scale at all levels of output? (Click to select) c. Suppose that the price of a bottle of vitamins is $2.33. At that price, the total quantity demanded by consumers is 75,000,000 bottles. How many firms will be in this industry? firm (s ) d. Suppose that, instead, the market quantity demanded at a price of $2.33 is only 75,000. How many firms will be in this industry? firm(s) e. Review your answers to parts b, c, and d. Does the level of demand determine this industry's market structure? (Click to select) 9 f. Compare your answer to part d of this problem with your answer to part d of problem 4. Do both production technologies show constant returns to scale? (Click to select) Mc