Question

what ismarginal profit?
the profit of one more unit of output, calculated as mr - mc.
total profit divided by the quantity of output.
the additional cost of producing one more unit.
revenue earned by selling all output in a monopoly.
the total cost of production minus fixed costs.
1 pts
question 8
what is amonopoly?
a market where one firm produces all of the output.
a competitive market with many sellers.
an industry where marginal costs equal marginal revenue.
a market where firms face no barriers to entry.
a system that removes price controls and encourages competition.
1 pts
question 9
what is a natural monopoly?
an industry where economies of scale limit competition
a market where firms produce goods at zero economic profit
a monopoly granted through legal patents or copyrights
a market structure where many firms sell identical products.
an industry where production costs remain constant with output.

Explanation:

Question 7:

Marginal profit is defined as the profit from producing one more unit of output. Mathematically, profit \( \pi=TR - TC\). The marginal profit \(M\pi=\frac{d\pi}{dQ}=\frac{dTR}{dQ}-\frac{dTC}{dQ}\), where \(MR = \frac{dTR}{dQ}\) (marginal revenue) and \(MC=\frac{dTC}{dQ}\) (marginal cost). So, \(M\pi=MR - MC\).

Question 8:

A monopoly is a market structure where a single firm is the sole producer of a good or service with no close substitutes. There are high barriers to entry (e.g., legal, economic, or technical barriers).

Question 9:

A natural monopoly occurs when economies of scale are so large that one firm can produce the entire industry output at a lower average cost than multiple firms. This limits competition as smaller firms cannot achieve the same cost - efficiency.

Answer:

Question 7:

The profit of one more unit of output, calculated as MR - MC.

Question 8:

A market where one firm produces all of the output.

Question 9:

An industry where economies of scale limit competition.