Question 4 A monopolist estimates that at the current price being charged for the product, marginal revenue is less than marginal cost, and price...
I am not sure wiz these MCQ's answers cause I can't find the answer on the website therefore I can't check my answer. I have put my answer on the picture.
2.In Q4, why the answer is not C?
I am confused with Q10, Q12 and Q15. The answer for 10, 12 and 15 are C, A/C and A respectively.
For Q10, I think MR=MC and 5X( X is the number of quantity picked)=110, but there is no answer for this result.
For 12, I chose B and for 15 I had no idea.
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Question 4A monopolist estimates that at the current price being charged for the product, marginal revenue is less than marginal cost, and price elasticity of demand is —1.4. To increase proﬁtthe monopolist should: (a) Increase price and sell less (b) Increase price and sell more (c) Decrease price and sell less (d) Decrease price and sell more X Quali— 9The table below presents data on the productivity of fruit pickers working on a fruit farm The fruit farming industry can be assumed to be competitive.Number of workers Quantity of fruit picked per day (kg)1 205090l20I45I65180I90 eeqauAuu The market price of fruit is $5 per kilo. Fruit pickers here are not paid by results. They receive a ﬁxed wage of S] 10 per dayThe Marginal Revenue Product from employing the 7“ worker is: (a) $15 (b) 15 kg (c) S75 (d) SI 00 Question to Consider the data for Question 9 To maximise proﬁt the factory should employ:(a) 3 workers 0)) 4 workers (e) 5 workers (d) 6 workers If the supply curve of a factor of production facing a competitive ﬁrm is perfectlyinelastic, then from the ﬁrm’s point of view: (a) none of the factor’s earnings is necessary transfer payment (b) all of the factor’s earnings is producer surplus (c) none of the factor’s earnings is rent (d) all of the factor’s earnings is rent Question 15 Oligopolists are more likely to engage in successful collusion to maximise industryproﬁts when (a) the barriers to the entry of new firms into the industry are high(b) The degree of product differentiation between each ﬁrms’ product is high(c)'l'he number of member firms in the industry is high (d) total demand for the industry’s product is declining rather than growing