need help with marginal cost and average total cost
the can represent 4 different variables,
depending on the curve. If the curve being referred
to is the Marginal Cost curve, the height to the
curve for a given quantity of water represents MC
of selling that last unit of water If the curve being
referred to is the Average Total Cost curve, the
height to the curve for a given quantity of water
represents ATC of selling those units of water If
the curve being referred to is the Demand curve,
the height to the curve for a given quantity of
water represents highest price buyers would pay
for that last unit of water If the curve being
referred to is the Marginal Revenue curve, the
height to the curve for a given quantity of water
represents MR of selling that last unit of water
A.
Answer the following and explain why
1. the profit maximizing or loss minimizing
quantity of water, the Monopolist will choose the
sell = _______________
because on the last unit sold _______________
note: the vertical axis is measured $/cu. ft and represents the
2. The equilibrium price the firm (Monopolist) will charge for water will = _________
because ____________
3.Total Revenue earned by the firm (Monopolist) selling water will = _________
4. Total Cost of selling water to the firm (Monopolist) of Selling water will = _______
5. The allocative efficient quantity of water the Firm (Monopolist) to sell should = ______
because__________
6. The dead weight loss that is expected to occur at the profit maximizing loss minimizing equilibrium quantity will = _____________
B. Assuming the Government chooses the regulate (legislate) the Price the Monopolist is allowed to charge, answer the
following:
1. If the goal of the regulators is to eliminate the economic profits earned by the firm, then
a. The Price the regulators would allow the monopolist to charge will =___________
b. quantity of water the monopolist will produce will = ________
2. If the goal of the regulators is to eliminate the dead weight loss, then
a. The Price the regulators would allow the monopolist to charge will = _______
b. the quantity of water the monopolist will produce will = _______
C. Now assume a $2/cu. ft. tax is imposed on the sale of water and increases Marginal Costs by $2/cubic feet. (use the
dashed MC curve) determine the following
1. the new equilibrium quantity of water the monopolist will choose to produce = _____
2. the new equilibrium Price of water the monopolist will charge will = _____
3. If you compare the old equilibrium price the monopolist charged (A. 4) with the new equilibrium price charged (C. 2)
the change in price = $1/cubic foot, but the rise in Marginal Cost was $2/cubic feet. Why doesnt the rise in price equal to
the rise in Marginal Cost, (i.e., why didnt the monopolist raise the price by $2/cubic feet, when their MC increased by $2/cu.ft.)
Because of the mathematical relationship between price and Marginal Revenue, which states if price drops by one unit (in this case, $1/cu.ft.), then MR will
fall by twice the drop in price 9 in this case, $2/cu.ft.). This principle also states if MR rises by one unit ( in this case, $2/cu.ft.), then the change in Price can
rise by of that unit (in this case $1/cu. ft.
D. Now draw and label a new Average Total Cost curve so that the monopolist cannot avoid incurring economic losses
Nether dite ne tired o is the one the high curve furaha MC afale web do Arte we cones ATC wawe there is the head carne he neprem www.bilpryw for that we referred to the kaiyaa Mitte A. Antown the post quantity of the old the 2. The method be otal de poesig wahil A total cost of one of the water wit Bacau 5. The two of them to Be Thenal weight loss Bottled at the programy le can be there you don't want to than a Maala following 1. the goal of the posts to eliminate the tools and by the time The Price there would do the month The quantity of the most produce will of the goal of the reported right tour.com The Price templators would how the monopoli to charge The quantity of the most will produce will Nowe aut is imposed on the sale of an eye the dashed MC curve desemine the following 1, the new equilibrium quantity of water the monopolist will choose to produce the new librium Price of water the monopolio will charge wil 3. If you compare the old minum price the monolitched with price charged C) the change in price 51/wicfoot, but there we ws/cubic feet Why done in price equal ther in growth . D. Now draw and label new Average Total Cost curve so that the monopolet cannot wo incurring economics 1 S. Note: the can represent 4 different variables. depending on the curve. If the curve being referred to is the Marginal Cost curve, the height to the curve for a given quantity of water represents MC of selling that last unit of water if the curve being referred to is the Average Total Cost curve, the height to the curve for a given quantity of water represents ATC of selling those units of water 1 the curve being referred to is the Demand curve, the height to the curve for a given quantity of water represents highest price buyers would pay for that last unit of water If the curve being referred to is the Marginal Revenue curve, the height to the curve for a given quantity of water represents MR or selling that last unit of water A. Answer the following and explain why 1. the profit maximizing or loss minimizing quantity of water, the Monopolist will choose the sell Because on the last unit sold Stian SAR Note the verticale is measured S/cu.ft and represents the 2. The equilibrium price the firm (Monopolist) will charge fol Because 3. Total Revenue earned by the firm (Monopolist) selling water will = Because: 4. Total cost of selling water to the firm (Monopolist) of Seling water will Because 5. The allocative efficient quantity of water the Firm (Monopolist) to sell should Because 6 The "dead weight loss" that is expected to occur at the profit maximizing loss minimizing equilibrium quantity will (you can shade in the area, if you don't want to calculate it) B. Assuming the Government chooses the regulate (legislate) the price the Monopolist is allowed to charge, answer the following: 1. If the goal of the regulators is to eliminate the economic profits earned by the firm, then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will 2. If the goal of the regulators is to eliminate the dead weight loss", then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will = Now the 4 depending on the evergreen is the only the fight to the curve for a ww of light if he were efter the lignen Awwing the une being real is there the lights the curve fatty af W proche pre that If the nuwe nad to the wwwty of theorie A Answer the following and plans why 1. the profit mauming or loss in way ofw the Month will choose the sel Because TIGO eventuale 2.The equilibrium price the firm Monopolietilthage Become 1.Total Revenue eamed try the firm Monopolie water will Because 4. Total Costoseling water to the firm onopolt) eling water will Because S. The locatie efficient quantity of water te Fir Monopolist to sell should Because The dead weight loss that is expected to secur at the protesting less entire putting you can shade in the area, you don't want to call it) B. Assuming the Government chooses the regulate frislate the price the Monopolist halowed to charge the following 1. the goal of the regulation is to eliminate the economic profits and by the firm.then a The Price the regulators would allow the monopol to change will The quantity of water the monopolist will produce wil 2. the goal of the regulators to eliminate the dead weight loss, then A. The Price the regulators would allow the monopolist to change will b. The quantity of water the monopolist will produce wil Now assume a $2/eu. It tak is imposed on the sale of water and increases gets by Subic feet use the dashed MC curve determine the following 1. the new equilibrium quantity of water the monopolist will choose to produce 2. the new equilibrium Price of water the monopolist will charge will 2. if you compare the old equilibrium price the monopolist charged IA 4 weh the new equibrum price charged 23 the change is price = $1/cubic foot, but the rise in Most was $2cubic fert Why doesn't the rise in price equal to the rise in Marginal Cost .. why didn't matplats the price by Sweet) hal with Now draw and label a new Average Total Cost curve so that the monopolist cannot word incurring economie ZA th Note: the can represent 4 different variables, depending on the curve. If the curve being referred to is the Marginal Cost curve, the height to the curve for a given quantity of water represents MC of selling that last unit of water If the curve being referred to is the Average Total Cost curve, the height to the curve for a given quantity of water represents ATC of selling those units of water i the curve being referred to is the Demand curve. the height to the curve for a given quantity of water represents highest price buyers would pay for that last unit of water if the curve being referred to is the Marginal Revenue curve, the height to the curve for a given quantity of water represents MR of selling that last unit of water A. Answer the following and explain why 1. the profit maximising or loss minimizing quantity of water, the Monopolist will choose the sell Because on the last unit sold 5 500 m 3000 Note the verticala is measured S/cu.ft and represents the 2. The equilibrium price the firm (Monopolist) will charge fo Because 3.Total Revenue earned by the firm (Monopolist) selling water will Because: 4. Total cost of selling water to the firm (Monopolist) of Selling water will Because 5. The allocative efficient quantity of water the Firm (Monopolist) to sell should = Because 6 The "dead weight loss that is expected to occur at the profit maximizing loss minimizing equilibrium quantity (you can shade in the area, If you don't want to calculate it) B. Assuming the Government chooses the regulate (legislate) the Price the Monopolist is allowed to charge, answer the following 1. If the goal of the regulators is to eliminate the economic profits earned by the firm, then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will = 2. If the goal of the regulators is to eliminate the dead weight loss", then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will 1. Mc for a firm of selling water, 2.ATC for a firm of selling water 3. the price of water, 4. the marginal Revenue for a firm selling water $8/cutt $6/ med selling wat S4/cu.ft. ww ATC se water $2/cu.ft. 0 500 million cu.ft. 1000 million cu.ft. WI quantity of water in a month will charge fo olist) selling water will = 1. Mc for a firm of selling water, 2. ATC for a firm of selling water 3. the price of water, 4. the marginal Revenue for a firm selling water $8/cu.ft $6/cutt teselling wat $4/cu.ft. w ATC setting water $2/cutt. 0 600 million cu.ft. w 1000 million cu.ft.. wi quantity of water in cu. ft./month Nether dite ne tired o is the one the high curve furaha MC afale web do Arte we cones ATC wawe there is the head carne he neprem www.bilpryw for that we referred to the kaiyaa Mitte A. Antown the post quantity of the old the 2. The method be otal de poesig wahil A total cost of one of the water wit Bacau 5. The two of them to Be Thenal weight loss Bottled at the programy le can be there you don't want to than a Maala following 1. the goal of the posts to eliminate the tools and by the time The Price there would do the month The quantity of the most produce will of the goal of the reported right tour.com The Price templators would how the monopoli to charge The quantity of the most will produce will Nowe aut is imposed on the sale of an eye the dashed MC curve desemine the following 1, the new equilibrium quantity of water the monopolist will choose to produce the new librium Price of water the monopolio will charge wil 3. If you compare the old minum price the monolitched with price charged C) the change in price 51/wicfoot, but there we ws/cubic feet Why done in price equal ther in growth . D. Now draw and label new Average Total Cost curve so that the monopolet cannot wo incurring economics 1 S. Note: the can represent 4 different variables. depending on the curve. If the curve being referred to is the Marginal Cost curve, the height to the curve for a given quantity of water represents MC of selling that last unit of water if the curve being referred to is the Average Total Cost curve, the height to the curve for a given quantity of water represents ATC of selling those units of water 1 the curve being referred to is the Demand curve, the height to the curve for a given quantity of water represents highest price buyers would pay for that last unit of water If the curve being referred to is the Marginal Revenue curve, the height to the curve for a given quantity of water represents MR or selling that last unit of water A. Answer the following and explain why 1. the profit maximizing or loss minimizing quantity of water, the Monopolist will choose the sell Because on the last unit sold Stian SAR Note the verticale is measured S/cu.ft and represents the 2. The equilibrium price the firm (Monopolist) will charge fol Because 3. Total Revenue earned by the firm (Monopolist) selling water will = Because: 4. Total cost of selling water to the firm (Monopolist) of Seling water will Because 5. The allocative efficient quantity of water the Firm (Monopolist) to sell should Because 6 The "dead weight loss" that is expected to occur at the profit maximizing loss minimizing equilibrium quantity will (you can shade in the area, if you don't want to calculate it) B. Assuming the Government chooses the regulate (legislate) the price the Monopolist is allowed to charge, answer the following: 1. If the goal of the regulators is to eliminate the economic profits earned by the firm, then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will 2. If the goal of the regulators is to eliminate the dead weight loss", then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will = Now the 4 depending on the evergreen is the only the fight to the curve for a ww of light if he were efter the lignen Awwing the une being real is there the lights the curve fatty af W proche pre that If the nuwe nad to the wwwty of theorie A Answer the following and plans why 1. the profit mauming or loss in way ofw the Month will choose the sel Because TIGO eventuale 2.The equilibrium price the firm Monopolietilthage Become 1.Total Revenue eamed try the firm Monopolie water will Because 4. Total Costoseling water to the firm onopolt) eling water will Because S. The locatie efficient quantity of water te Fir Monopolist to sell should Because The dead weight loss that is expected to secur at the protesting less entire putting you can shade in the area, you don't want to call it) B. Assuming the Government chooses the regulate frislate the price the Monopolist halowed to charge the following 1. the goal of the regulation is to eliminate the economic profits and by the firm.then a The Price the regulators would allow the monopol to change will The quantity of water the monopolist will produce wil 2. the goal of the regulators to eliminate the dead weight loss, then A. The Price the regulators would allow the monopolist to change will b. The quantity of water the monopolist will produce wil Now assume a $2/eu. It tak is imposed on the sale of water and increases gets by Subic feet use the dashed MC curve determine the following 1. the new equilibrium quantity of water the monopolist will choose to produce 2. the new equilibrium Price of water the monopolist will charge will 2. if you compare the old equilibrium price the monopolist charged IA 4 weh the new equibrum price charged 23 the change is price = $1/cubic foot, but the rise in Most was $2cubic fert Why doesn't the rise in price equal to the rise in Marginal Cost .. why didn't matplats the price by Sweet) hal with Now draw and label a new Average Total Cost curve so that the monopolist cannot word incurring economie ZA th Note: the can represent 4 different variables, depending on the curve. If the curve being referred to is the Marginal Cost curve, the height to the curve for a given quantity of water represents MC of selling that last unit of water If the curve being referred to is the Average Total Cost curve, the height to the curve for a given quantity of water represents ATC of selling those units of water i the curve being referred to is the Demand curve. the height to the curve for a given quantity of water represents highest price buyers would pay for that last unit of water if the curve being referred to is the Marginal Revenue curve, the height to the curve for a given quantity of water represents MR of selling that last unit of water A. Answer the following and explain why 1. the profit maximising or loss minimizing quantity of water, the Monopolist will choose the sell Because on the last unit sold 5 500 m 3000 Note the verticala is measured S/cu.ft and represents the 2. The equilibrium price the firm (Monopolist) will charge fo Because 3.Total Revenue earned by the firm (Monopolist) selling water will Because: 4. Total cost of selling water to the firm (Monopolist) of Selling water will Because 5. The allocative efficient quantity of water the Firm (Monopolist) to sell should = Because 6 The "dead weight loss that is expected to occur at the profit maximizing loss minimizing equilibrium quantity (you can shade in the area, If you don't want to calculate it) B. Assuming the Government chooses the regulate (legislate) the Price the Monopolist is allowed to charge, answer the following 1. If the goal of the regulators is to eliminate the economic profits earned by the firm, then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will = 2. If the goal of the regulators is to eliminate the dead weight loss", then a. The Price the regulators would allow the monopolist to charge will b. The quantity of water the monopolist will produce will 1. Mc for a firm of selling water, 2.ATC for a firm of selling water 3. the price of water, 4. the marginal Revenue for a firm selling water $8/cutt $6/ med selling wat S4/cu.ft. ww ATC se water $2/cu.ft. 0 500 million cu.ft. 1000 million cu.ft. WI quantity of water in a month will charge fo olist) selling water will = 1. Mc for a firm of selling water, 2. ATC for a firm of selling water 3. the price of water, 4. the marginal Revenue for a firm selling water $8/cu.ft $6/cutt teselling wat $4/cu.ft. w ATC setting water $2/cutt. 0 600 million cu.ft. w 1000 million cu.ft.. wi quantity of water in cu. ft./month
