QUESTION T In her local suburb, Penelope is renowned for her one-of-a-kind choco

Question

QUESTION T In her local suburb, Penelope is renowned for her one-of-a-kind chocolate called "rocky road. She has no competitors and is a profit maximising monopolist Which of the following statements are true Penelope would use the rule MR MC to determine the quantity to produce The price Penelope charges wouk be determined using only her marginal revenue and marginal cost curves. Assuming demand is linear, Penelope's marginal revenue curve is twice as steep as her demand curve The quantity Penelope chooses to produce will affect her profits. QUESTION 8 Samantha is the only producer of a very unique type of jewellery. There are no close substitutes to the jewellery that she ofters. Select the item from the list provided to make the following statements true 1. Supply 2. Govemment regulators 3. Economic profis 4. Marginal revenue 5. Demand Inemiciency resulting trom a monopoly's operations, that brings an overall reduction in consumer and producer surplus compared to an otherwise competitive market, is referred to as Sam's profit is maximised at the quantity where the Monopolistic competition involves product differentiation, thereby ensuring producers have some equals marginal cost. . Deadweight loss compared to none in a perfectly competitive market. 8. Differentiated 9. Market power 10. Opportunity costs 11. Maximised 12. Marginal cost

Explanation / Answer

7. Ans:

8. Answer to blank 1: Deadweight Loss

    Answer to blank 2: Marginal Revenue

    Answer to blank 3: Market Power

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