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

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Hello, I need help with this Econ question. I saw that these questions are already answered in bartleby

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
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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