Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue, and total profits if the monopolist were to produce at the positions (a) through (d) Indicated in table below? Costs and revenues 40 36 32 28 24 20 16 12 8 4 0 5 10 15 20 25 30 35 Quantity per period a. Total revenue maximization b. Profit-maximization c. Socially optimum price d Fair-return price MR D-AR MC AC Price ($) 16 15 14 Output 20 20 22.5 Total Revenue ($) 320 300 315 Total Profits ($) 120 180
Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue, and total profits if the monopolist were to produce at the positions (a) through (d) Indicated in table below? Costs and revenues 40 36 32 28 24 20 16 12 8 4 0 5 10 15 20 25 30 35 Quantity per period a. Total revenue maximization b. Profit-maximization c. Socially optimum price d Fair-return price MR D-AR MC AC Price ($) 16 15 14 Output 20 20 22.5 Total Revenue ($) 320 300 315 Total Profits ($) 120 180
Chapter25: Monopoly
Section: Chapter Questions
Problem 14E
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Transcribed Image Text:Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue,
and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below?
Costs and revenues
40
36
32
28
24
20
16
12
8
4
0
5
10
15 20 25 30 35
Quantity per period
a. Total revenue maximization
b. Profit-maximization
c. Socially optimum price
d. Fair-return price
MR
D=AR
MC
AC
Price ($)
16
G
15
141
Output
20
20
22.5
Total
Revenue ($)
320
300
315
Total
Profits ($)
120
180
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