Unit cost curve question for monopolistic firm? Refer to the figure below for th

Question

Unit cost curve question for monopolistic firm?

Refer to the figure below for the following question. (Assume this firm is a monopolistic competitor) MC ATC 50 33.33 D AR 16.665 MR 468.75 375 300 1. At what output (Q) will this firm maximize profit Number 2. At what price (P) will this firm maximize profitNumber 3. What is the total revenue (TR) earned at this output level Number 4. What is the average total cost (ATC) at the profit maximizing output Number 5. What is the Total Cost at the profit maximizing output Number 6. What is the economic profit (p) is eamed Number 7. What is the economic profit per unit at this output Number 8. Is this firm in a long run equilibrium situation (Answer Yes or No) Click For List

Explanation / Answer

Answer
1)
the firm produces at MR=MC
where
Q=375

2)
Price is found at the quantity of demand curve
P=$50
3)
TR=P*Q
=50*375
=18750
4)
ATC=$50 from the ATC curve

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