Question

What three things are we trying to determine after 36:00 in Hour #1 of the April lecture on monopolies?

a) Market demand, production cost, and profit maximization
b) Consumer surplus, producer surplus, and deadweight loss
c) Marginal revenue, marginal cost, and profit maximization
d) Elasticity of demand, price discrimination, and market power

Answer 1

After 36:00 in Hour #1 of the lecture on monopolies, we are determining marginal revenue, marginal cost, and profit maximization.

Step-by-step explanation:

After 36:00 in Hour #1 of the April lecture on monopolies, we are trying to determine three key economic concepts related to monopolies: marginal revenue, marginal cost, and profit maximization. These concepts are critical in understanding how a monopoly decides on the quantity of output to produce and the price to charge for that output. By analyzing the demand curve for its product, a monopolist identifies the output level where marginal revenue equals marginal cost, which is the profit-maximizing point. The monopoly then uses this information to set a price on the demand curve above the marginal cost to maximize profits.