Question 41 1 pts Price, ATC MC, MR MC ATC P2 MR Demand Q102 Q3 Quantity If this

Question

Question 41 1 pts Price, ATC MC, MR MC ATC P2 MR Demand Q102 Q3 Quantity If this monopolist attempts to profit-maximize, it will produce OQ1 units and sell them at P OQ2 units and sell them at P4 O Q units and sell them at P OQ2 units and sell them at P Question 42 1 pts Price, ATC MC, MR MC ATC P2 MR Demand Q102 Q3 Quantity At the profit-maximizing level, this monopolist will (approximately) O incur a loss equal to the area (P1 - P4) Q1 O earn a profit equal to the area (P2 - P4) Q2 O earn a profit equal to the area (P2- P3) Q2 O break even

Explanation / Answer

1) to maximize profit monopolist will produce Q2 at price P2.

2) Profit maximising are is (P2-P4) X Q2

3) in perefect competiton firms produces at the minimum point of ATC. So he will produce at Q3 at price P3.

4) Since Equilibrium condition is MR = MC and it is occuring at 35 quantity and $65. So 2nd option is correct.

5) In Panel A Mr and MC is intersecting at Q quantity level and P price level.

6) If other firms enter in the market then demand for every firm will decrease so demand curve will shift to left and long run profit is 0 and pric will be equal to ATC so fourth option is right.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.