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Q1:The table below shows a monopolist\'s demand curve and the cost information f

ID: 1152988 • Letter: Q

Question

Q1:The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their maximum profit be?    (to determine profit, calculate total revenue and total cost for each quantity)

Q2: If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely NOT be the focus of the arguments that they will present in favor of the merger?

Q3:why does a monopoly face a down sloping demand?

Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400

Explanation / Answer

Q2: If two companies are seeking regulatory approval to merge their respective businesses, which of the following will most likely NOT be the focus of the arguments that they will present in favor of the merger?

Answer Option:- D) the newly created firm will have a greater market share

Explanation:- if two companies are seeking regulatory approval to merge their respective businesses, their main concern is to focus on getting economies of scale by sharing the resources of both companies this will help in reducing the cost of production so that they can extend that benefit to the consumer in lowering price and they least focused about the market share.

Q3:why does a monopoly face a down sloping demand?

Answer Option:- a)since it controls the market it faces a market demand

Explanation:- because a monopoly is the single seller who control the market, by lowering its price a monopoly can create more demand for its product. So it faces a downward sloping demand curve having relatively less elasticity of demand.

Q1) Quantity Price per Unit Total Cost Total Revenue Total Profit 10 100 100 1000 900 20 80 400 1600 1200 Maximum Profit 30 60 800 1800 1000 40 40 1,400 1600 200 50 20 2,400 1000 -1400 Total Revenue = Quantity x Price per unit Total Profit = Total Revenue - Total Cost maximum profit = 1200 Answer Option A