18. To find the net resut, we must first ind When analyiding the monopoists dema

Question

18. To find the net resut, we must first ind When analyiding the monopoists demand and cos condrtions. a.ne output at which MR AVC to select the pron-maximizing ab. the hcCht of te demand curve to determine the st of operator. c. the aiurencs of sraruce iotal cost und seling priou to determine the esul. d. the price the monopoist is dirgin; subtracnar anal acaL e. he iow, ond, case in a monogolists sherl-tun position 17. A monopolizod merkot is charscterized by a. Very aasy barriers lo entry b. Singla Em that facos complete market competition. c. A sola seller of a product for which there are faw suitable substitutes d. A soie seller af a product for whlch there are thousands of subeithtcs 0. The co-aistence of ivais in the market 18. A monopoly a. wil shut dowr if loases cxoped total fued coets b. faces the market demand curve which is perfectly elastic c wll madimize prolt by producing a quanity where MR AR d, has a marginal revenue arve ich slopes downward and les above the domsnd curve. e, all the above 19. What levol of output would a firm produce to madmize proilt or minimize osses? Atthe level where MC >MU A te level where MRC C. Ad the levd where AG> MR d, At the level where MR MC e. At the leval whors MR AC 20. An industy h, which average t tai cets 'al output nreases 8. is a consanost industry bis an inasing-cost industry. G ia a decraasing-cost industry, d. is an increasing-outpua industry. 8. is a decreasing-output industry

Explanation / Answer

16) The question is not clear, as it says "To find the net result". Net result of what?
However, please note the below:

(a) is incorrect as for maximizing profit MR=MC.
(b) is also incorrect

17) Answer (c)-A sole seller of a product for which there are few suitable substitutes.

18) (a)-A monopoly will shut down if losses exceed total fiexd costs.

19) Answer (d)
The monopolist's profit maximizing level of output is found by equating its MR with its MC, which is the same profit maximizing condition that a perfectly competitive firm uses to determine its equilibrium level of output.

20) Answer (c) Decreasing cost industry (an industry in which average total costs fall as output increases and rise as output decreases is a decreasing cost industry).

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