Consider a monopoly where the inverse demand for its product is given by P = 50 ? 2Q. Total costs for this monopolist are estimated to be C(Q) = 100 + 2Q + Q2. At the profit-maximizing combination of output and price, consumer surplus is:

Explain the difference between the short run and the long run as it relates to the firm's production function. Why is this distinction important to a firm's manager?

What will be an ideal response?

In which of the following situations, is a barrier to entry into a monopoly least likely to exist?

a. A large firm enjoys economies of scale. b. The tariffs on foreign goods are eliminated by the government. c. A company is the sole inventor of what it produces and no one else can make a good substitute. d. Government restrictions such as license requirements are enacted. e. A company is the only owner of an essential resource needed to produce its product.