Answer to Question #49284 in Microeconomics for Bradly

Question #49284
1) Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its: marginal product function average product function marginal cost function average variable cost function average total cost function 2) Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its: i. total revenue is equal to total variable cost ii. total revenue is equal to total cost iii. average revenue is equal to average variable cost iv. average revenue is equal to average total cost i ii iii i and iii ii and iv 3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price: as far above average total cost (ATC) as possible along the elastic portion of its demand curve along the inelastic portion of its demand curve at the minimum of it average total cost (ATC) curve where the marginal cost (MC) curve intersects the demand curve
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Expert's answer
2014-11-25T10:06:58-0500
1) Like a perfectly competitive firm, if a monopolist wants to know how much it will save by reducing output, it will evaluate its:
c) marginal cost function

2) Suppose that a monopolist finds itself to be operating at a break-even point. It follows that its:
i. total revenue is equal to total variable cost
ii. total revenue is equal to total cost
iii. average revenue is equal to average variable cost
iv) average revenue is equal to average total cost
e) ii and iv

3) A profit-maximizing monopolist that sells all units of its output for a single (uniform) price will set this price:
a) as far above average total cost (ATC) as possible

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