HI5003 Economics for Business Assignment Help

Assessment Question Week 5 and 6:

Market structure

Question 3 11 Marks:
The graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that supplies Hi-tech components. Use the graph to answer the questions that follow.

i. State the elasticity of the monopoly firm demand curve. (1 Mark)
ii. Considering the figure, examine the benefits of the characteristics of the monopoly demand curve to ABC Inc. Ltd. (3 Marks)
iii. Suppose the demand and cost curves result in ABC Inc. Ltd earning an economic profit. Do you think ABC Inc. Ltd firm will earn profit in the long- run? Explain your answer. Assume all factors constant. (4 Marks)

iv. Examine the effects of ABC Inc. Ltd on consumers. (3 Marks)