Question

Question 46 2p Which of the following is true of the profit, earned by a monopolist? Profit is maximized along the inelastic portion of the demand curve. Normal profit is ensured where price is equal to average total cost. Normal profit is ensured where marginal cost exceeds average revenue. Economic profit is made where average variable cost equals marginal revenue. Profit is maximized where marginal revenue exceeds marginal cost. Question 47 2 pts A non-price discriminating monopolist's demand curve: is the same as its marginal cost curve. is horizontal at the market price. indicates that the firm must raise price to sell additional units. lies below the marginal cost curve at all levels of output. lies to the right of its marginal revenue curve.

Answer 1

46) A monopolist earns normal profit when Total average cost equals price / average revenue. We can see that monopolist produce at a output level where MR = MC while at that level of output AR = AC. Therefore, monopolist earns normal profit. Option B is correct.
Puontiti
47) A non-discriminating monopolist demand curve would be above its marginal revenue curve. Here the monopolist (the above one) is the non discriminating one who earns a profit level of ABCD while the figure below shows the monopolist who is price discriminating whose demand curve is same as marginal revenue curve and earns a profit level of ABC. Option E is correct.
til MRS DEAR

Puontiti

til MRS DEAR