Questions from Microeconomics

Q: Suppose that the quantity demanded per day for a product is 90

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: Briefly explain whether this firm has...

Q: Why is limited liability more important for firms trying to raise funds

Why is limited liability more important for firms trying to raise funds from a large number of investors than for firms trying to raise funds from a small number of investors?

Q: Use the following graphs to answer the questions. /

Use the following graphs to answer the questions. a. What is the equilibrium quantity of trash collectors hired, and what is the equilibrium wage? b. What is the equilibrium quantity of receptionist...

Q: As noted in this chapter, many generic versions of the diabetes

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...

Q: What is the relationship between a monopolist’s demand curve and the market

What is the relationship between a monopolist’s demand curve and the market demand curve? What is the relationship between a monopolist’s demand curve and its marginal revenue curve?

Q: In a column in the Wall Street Journal, venture capitalist Peter

In a column in the Wall Street Journal, venture capitalist Peter Thiel described the difference between monopoly businesses and competitive ones: “Suppose you want to start a restaurant in Palo Alto t...

Q: In what sense is a monopolist a price maker? Will charging

In what sense is a monopolist a price maker? Will charging the highest possible price always maximize a monopolist’s profit? Briefly explain.

Q: Marty and Ann discussed the rule of equal marginal utility per dollar

Marty and Ann discussed the rule of equal marginal utility per dollar spent, a topic that was recently covered in the economics course they were both taking: Marty: “When I use my calculator to divide...

Q: Draw a graph that shows a monopolist earning a profit. Be

Draw a graph that shows a monopolist earning a profit. Be sure your graph includes the monopolist’s demand, marginal revenue, average total cost, and marginal cost curves. Be sure to indicate the prof...

Q: Ed Scahill has acquired a monopoly on the production of baseballs (

Ed Scahill has acquired a monopoly on the production of baseballs (don’t ask how) and faces the demand and cost situation shown in the following table. a. Fill in the remaining val...