1- The below graph shows a monopolist that faces a market demand according to his cost functions. Answer all following questions: Figure 1 MC $22 18 16 14 11 8 MR I 12 17 22 a. What is the production level that will maximize profit (or minimize loss) for the monopolist? Explain. b. Calculate the monopolist's total revenue (TR) at the production level that will maximize profit (or minimize loss). c. Calculate the monopolist's total cost (TC) at the production level that will maximize profit (or minimize loss). ATC AVC D = AR
1- The below graph shows a monopolist that faces a market demand according to his cost functions. Answer all following questions: Figure 1 MC $22 18 16 14 11 8 MR I 12 17 22 a. What is the production level that will maximize profit (or minimize loss) for the monopolist? Explain. b. Calculate the monopolist's total revenue (TR) at the production level that will maximize profit (or minimize loss). c. Calculate the monopolist's total cost (TC) at the production level that will maximize profit (or minimize loss). ATC AVC D = AR
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 29CTQ: Imagine that you ale managing a small firm and thinking about entering the market of a monopolist....
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Hello, I need help with this Econ question. I saw that these questions are already answered in bartleby
Transcribed Image Text:1- The below graph shows a monopolist that faces a market demand according to his cost
functions. Answer all following questions:
Figure 1
MC
$22
18
16
14
8
MR
I
12 17 22
a. What is the production level that will maximize profit (or minimize loss) for the
monopolist? Explain.
b. Calculate the monopolist's total revenue (TR) at the production level that will maximize
profit (or minimize loss).
c. Calculate the monopolist's total cost (TC) at the production level that will maximize
profit (or minimize loss).
d. What is the profit (or loss) the monopolist will make, at the production level that will
maximize profit (or minimize loss).
e. Is the monopolist going to still produce or shutdown? Explain.
11
(0
ATC
AVC
D = AR
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