Suppose that the quantity demanded per day for a product is 90 when the price is $35.

Question:

Suppose that the quantity demanded per day for a product is 90 when the price is $35. The following table shows costs for a firm with a monopoly in this market:

Quantity (per day) Total Cost

30................................................$1,200

40..................................................1,400

50..................................................2,250

60..................................................3,000

Briefly explain whether this firm has a natural monopoly.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 9780135952955

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

See More Books

Question Posted: Nov 01, 2017 07:20 AM

See More Questions

Suppose that the quantity demanded and quantity supplied in the market for milk is as follows: a. What is the equilibrium price and quantity of milk? b. If the government places a price ceiling of $2...
Suppose the supply and demand schedules for bicycles are as they appear below. a. Graph these curves and show the equilibrium price and quantity. b. Now suppose that it becomes unfashionable to ride...
Suppose that the quantity of steel demanded in France is given by Qs = 100 - 2Ps + 0.5Y + 0.2PA, where Qs is the quantity of steel demanded per year, Ps is the market price of steel, Y is real GDP in...
What would a profile look like across a restraining bend? Releasing bend?
The solubility coefficient of a gas may be defined as the number of cubic centimeters (STP) of the gas that dissolves in 1 cm3 of a solvent under a partial pressure of 1 atm. The solubility...
Will Thomas calls you with respect to a tax issue. He has found a tax case in the U.S. District Court of South Carolina that is in favor of his position. The IRS lost and did not appeal the case....
To understand the main elements of a Web-based business. LO.1
Irene contributes land to Micro Development Partnership for a 30% interest. The land's basis is $20,000, and it has a fair market value of $80,000. Micro reports a net operating loss of $100,000 for...
Building a kayak using the composite method is a very labour-intensive process. In the fabrication department, the kayaks go through several steps as employees carefully place layers of Kevlar in a...
Consider the plane wall of Figure 3.1, separating hot and cold fluids at temperatures T ,1 and T ,2 ' respectively. Using surface energy balances as boundary conditions at x = 0 and x = L (see...
In China, the government owns many more firms than in the United States. A former Chinese government official argued that a number of government-run industries such as oil refining were natural...
As noted in this chapter, many generic versions of the diabetes drug Glucophage were introduced within the first year of Glucophage's patent expiration. The U.S. Supreme Court has ruled that patients...
Repeat the same analysis as the prior problem for the monthly stock returns of American Express.
What are major initiatives would you expect to see in a strategic plan focusing on a public health organization?
The purchase of $\$ 500$ of supplies on account will: a. Increase both assets and stockholders' equity by $\$ 500$ b. Increase assets and decrease liabilities by $\$ 500$ c. Increase assets and...
Venus Company owned a service truck that was purchased at the beginning of 2011 for $\$ 20,000$. It had an estimated life of three years and an estimated salvage value of $\$ 2,000$. Venus uses...
You are observing the sales department staff using exponential smoothing to fore- cast monthly sales. Their forecast for January's sales was 12,000 units. January's actual sales figure became...
Use the ID3 algorithm to build the full decision tree for the data set given in Section 10.9.2. 10.9.2 Example We will start with the training data given below: Film Country of origin Big star Genre...
A toggle device is being used to compact scrap steel shavings, as illustrated in Figure P616. Design the two links of the toggle to be steel, SAE 5160 OQT 1000, with a circular cross section and...
Planning: Creating an Audience Profile; Collaboration: Team Projects. Compare the Facebook pages of three companies in the same industry. Analyze the content on all available tabs. What can you...
What is the difference between a horizontal merger and a vertical merger? Which type of merger is more likely to increase the market power of a newly merged firm?
In 2016, telecommunications company AT&T reached an agreement to buy TimeWarner, which owns cable networks, magazines, and a film studio. In an interview with the Wall Street Journal, the CEOs of the...
An article in the Wall Street Journal on the DOJs investigation into possible price fixing by pharmaceutical firms selling generic drugs noted, Agreements among companies to set prices or to divide...
Discuss American History
Your firm has developed a new lithium ion battery polymer that could enhance the performance of lithion ion batteries. These batteries have applications in many markets including cellphones, laptops,...
Need help analyzing statistical data 1. ANOVA) True or false: If we assume a 95% confidence level, there is a significant difference in performance generally across all groups. 2. (t-test) True or...

Suppose that the quantity demanded per day for a product is 90 when the price is $35.

Question:

Step by Step Answer:

We can calculate average total cost at each quantity To have a natural monopoly a firm must be ab...View the full answer

Microeconomics

Students also viewed these Micro Economics questions