If a monopoly currently produces 100 units of output at $50 each

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Anonymous
2016-11-30 21:19:18 Post No. 1644702
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Anonymous 2016-11-30 21:19:18 Post No. 1644702 [Report]

If a monopoly currently produces 100 units of output at $50 each and elasticity of demand is 0.8, the firm:

a. is not maximizing profit
b. is experiencing a loss
c. is earning a profit
d. may increase revenue to more than $50 by selling one more unit of output

Anonymous 2016-11-30 21:30:27 Post No.1644749
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Anonymous 2016-11-30 21:30:27 Post No.1644749 [Report]

Do your own microecon homework

Anonymous 2016-11-30 21:36:35 Post No.1644769
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Anonymous 2016-11-30 21:36:35 Post No.1644769 [Report]

>>1644749
I'm trying it's hard.

Anonymous 2016-11-30 21:45:18 Post No.1644791
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Anonymous 2016-11-30 21:45:18 Post No.1644791 [Report]

I'm the elasticity of demand means that they are selling ~80 units?

How do we know what their profit margin is if we don't know the cost of production?

wagecuk 2016-11-30 22:03:46 Post No.1644838
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wagecuk 2016-11-30 22:03:46 Post No.1644838 [Report]

without additional information, you can only tell that they are overproducing. they can maximize profit by lowering production, and raising the price of each unit.

You are over thinking it, amigo.

Best of luck

Anonymous 2016-11-30 22:05:52 Post No.1644846
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Anonymous 2016-11-30 22:05:52 Post No.1644846 [Report]

>>1644702
e. is illegal and it would be broken up under the Sherman Antitrust Act of 1890 since monopoly's are outlawed

Anonymous 2016-11-30 22:08:25 Post No.1644853
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Anonymous 2016-11-30 22:08:25 Post No.1644853 [Report]

>>1644838
So it's a?

wagecuk 2016-11-30 22:08:42 Post No.1644854
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wagecuk 2016-11-30 22:08:42 Post No.1644854 [Report]

>>1644846
lol, good answer.

I mean realistically speaking though price fixing will never be out completely.

wagecuk 2016-11-30 22:09:43 Post No.1644858
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wagecuk 2016-11-30 22:09:43 Post No.1644858 [Report]

>>1644853
I believe so, yes.

Anonymous 2016-11-30 22:11:37 Post No.1644863
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Anonymous 2016-11-30 22:11:37 Post No.1644863 [Report]

>>1644858
thanks wagecuk

wagecuk 2016-11-30 22:43:07 Post No.1644955
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wagecuk 2016-11-30 22:43:07 Post No.1644955 [Report]

>>1644863
sure thing, pal :)

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I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
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