Do monopoly firms always make profit? (3 marks) a. And when should a monopoly firm shuts down? Justify your answer.

/in /by

Do monopoly firms always make profit? (3 marks)
a. And when should a monopoly firm shuts down? Justify your answer.

You might also like
A firm's marginal revenue (MR) * A. IS EQUAL TO ΔTR/ΔQ. * B. IS EQUAL TO THE TOTAL REVENUE DIVIDED BY THE QUANTITY SOLD. * C. IS EQUAL TO THE PRICE OF ITS PRODUCT MULTIPLIED BY THE QUANTITY SOLD * D. IS EQUAL TO (TR – TC)/Q
When quantity demanded is relatively responsiveness to a change in price is known as
Suppose that the firm output is given by q=aLK2 specify the marginal products of labour and capital
The average total cost (ATC) curve of a business varies/curve with the time frame. Give some explainations and reasons for the DIFFERENCE BETWEEN SHORT AND LONG-TERM ATC CURVES and HOW FIRMS can be identified as economies of scale, constant returns of scale and diseconomies of scale.
Suppose that the total market demand for products compresses the demand of two individuals with identical demand equations Qd1=Qd2=Q3=50-25p what is the market demand equation
Assume that you are the owner of a sports shoe shop in a shopping mall that sells Nike running shoes. From your till slips that indicate your annual sales and from a questionnaire answered by your customers you found the following: The potential amount of shoes that you can sell per year is 6 000 pairs, regardless of whether you change the prices of the shoes or not. If you adjust your price downwards or upwards by 1%, the consumers tend to buy 1.5% either more or less. Your supply curve indicates that you should always keep 500 units in stock and that a 1% change in the price of a pair of shoes tends to increase or reduce the sales of a pair of shoes by 0.5%. 1. Construct your shop's demand and supply functions for running shoes. 2. Calculate the price of a pair of shoes as well as the expected annual sales. 3 Determine the elasticity of demand of your shoes. 4 Would it be worthwhile for you to launch a sale at the end of the month, in other words, would it help you to increase your revenue?
A fresh M.Com graduate turns down a job offer of Rs.3,00,000 per year and starts his own business. He will invest Rs. 5,00,000 of his own money, which has been in a bank account earning 7 per cent interest per year. He also plans to use a building he owns in Kolkata that has been rented for Rs.15,000 per month. Revenue in the new business during the first year was Rs.10,70,000 while other expenses were Advertising Rs. 50,000 Rent Rs. 1,00,000 Taxes Rs. 50,000 Employees’ salaries Rs. 4,00,000 Supplies Rs. 50,000 Determine Profit using accounting profit approach and economic profit approach.
The level of aggregate output demanded rises when the price level falls, because the resulting decrease in the interest rate will lead to a. higher investment spending and higher consumption spending. b. lower investment spending and higher consumption spending. c. higher investment spending and lower consumption spending. d. lower investment spending and lower consumption spending.