A nondiscriminating profit maximizing monopolist. Profit Maximization for a Monopoly 2022-10-07
A nondiscriminating profit maximizing monopolist Rating:
A monopolist is a firm that is the sole provider of a good or service in a particular market. In economics, profit maximization is the process of obtaining the highest possible profit by choosing the optimal output level and price for a product.
A nondiscriminating profit maximizing monopolist is a firm that does not discriminate between its customers and maximizes its profits by setting a single price for all of its customers. This means that the monopolist does not charge different prices for the same product or service to different customers based on factors such as their location, income, or other personal characteristics.
There are several arguments in favor of a nondiscriminating profit maximizing monopolist. First, it is more efficient for the monopolist to set a single price for all customers, rather than engaging in the costly and time-consuming process of setting different prices for different customers. This allows the monopolist to focus on production and distribution, rather than on price discrimination.
Second, a nondiscriminating profit maximizing monopolist may be seen as more fair and just, as it does not discriminate between its customers based on arbitrary factors. This can help to build trust and goodwill among customers, which can be beneficial for the monopolist in the long run.
However, there are also some potential drawbacks to a nondiscriminating profit maximizing monopolist. One concern is that the monopolist may be able to charge higher prices than would be possible in a competitive market, leading to higher costs for consumers. Additionally, the monopolist may have less incentive to innovate and improve the quality of its products or services, as it does not face competition.
In conclusion, a nondiscriminating profit maximizing monopolist is a firm that does not discriminate between its customers and maximizes its profits by setting a single price for all of its customers. While this approach has some benefits, it also has the potential to lead to higher prices and reduced innovation.
A profit maximizing nondiscriminating monopolist will set its price a equal to
What is the relationship between price elasticity of demand and the monopolist's revenue? A monopolist is the wealthiest person in a given market, usually because he is the most powerful and most ruthless. If a regulatory commission wants to establish a socially optimal price for a natural monopoly, it should select a price: A. C Monopolists can charge any price they want and make a profit. Baking supplies flour, salt, etc. The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. A decline in the price of margarine will reduce the demand for butter.
True or False: Refer to the diagram for a nondiscriminating monopolist. The profit
Patent laws promote technical progress in all of the following ways except one. We can surmise that the marginal: A. Patents guarantee economic profits. Do pure monopolists maximize MR? The Herfindahl index for this industry is: a. An example of a monopolist would be Apple. The demand curve it perceives appears in Figure 1 a.
A nondiscriminating profit maximizing monopolist A will never produce in the
Marginal revenue is related to the price elasticity of demand — the responsiveness of quantity demanded to a change in price. The practice of price discrimination is associated with pure monopoly because: A. A monopoly is a firm that sells all or nearly all of the goods and services in a given market. Patents reduce a firm's incentive to develop new products. Second, all the previous units, which could have been sold at the higher price, now sell for less.
The company that made a profit while the market price was at its peak is a monopolist. If that is so, then pure monopoly does not exist. The marginal revenue curve for a monopolist always lies beneath the market demand curve. Imperfect Competition: An imperfectly competitive market is characterized as the non-homogeneous products and services. Assume a pure monopolist is currently operating at a price-quantity combination on the inelastic segment of its demand curve. If an increase in price causes an increase in total revenue, then demand can be said to be inelastic, since the increase in price does not have a large impact on quantity demanded.
Discriminating Monopoly: Definition, How It Works, and Example
The company that made a profit while the market price was at its peak is a monopolist. Six new firms enter the plastics industry. For instance, a store that operates in an affluent neighborhood might charge a higher rate compared with one located in a lower-income area. Patents give a permanent exclusive right to produce a new good. In the diagram, the range of diminishing marginal returns is: a.
This is a company that can profit more than its customers could if they chose to do so. The author would prefer a lower price than the publisher. The price of a brand-name prescription drug is higher than the price of a generic brand. Annual lease payment for use of the building. The price of lettuce is 59 cents a head and two for a dollar. They are a group of people who live around the world that have more than enough of a stake in Big Blue.
Apartments with the same square footage and comparable amenities may come with drastically different pricing based on where they are located. The pure monopolist maximizes profits by producing that output at which the differential between price and average cost is the greatest. A pure monopolist should never produce in the: A. What is the profit maximizing monopolist? In a famous 1947 case, the federal government accused the DuPont company of having a monopoly in the cellophane market, pointing out that DuPont produced 75% of the cellophane in the United States. They all help explain why a monopolist's demand and marginal revenue curves coincide. For a perfect competitor, each additional unit sold brought a positive marginal revenue, because marginal revenue was equal to the given market price. Raise price and raise output.
Price times quantity produced must be equal to or greater than total variable cost for some level of output or the firm will close down in the short run. Which of the following statements best illustrates the concept of derived demand? So when we think about increasing the quantity sold by one unit, marginal revenue is affected in two ways. A monopoly is when the market is completely dominated by a single holder of a patent, trademark, or other exclusive rights to a product or service. If price is reduced fromP1toP2, total revenue will: a. Refer to the information.
But you, of course, have to give the name of your store to the owner. The copper, aluminum, cement, and industrial alcohol industries are examples of: a. Which of the following is true at the profit-maximizing quantity for both a perfectly competitive firm and a monopoly? Why is there a social cost of monopoly quizlet? The monopolist can either choose a point like R with a low price Pl and high quantity Qh , or a point like S with a high price Ph and a low quantity Ql , or some intermediate point. Price must be at least equal to average total cost. Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. Similarly, marginal cost is the additional cost the firm incurs from producing and selling one more or a few more units of output. Graphically, start from the profit maximizing quantity in Figure 3, which is 5 units of output.