2. Another monopolist graph is shown (right), use the graph to answer 2a - 2c.a. In order to maximize its profit, how much outputshould the monopoly produce?b. In order to maximize its profit (or minimize itsloss), what price should the monopoly charge forits product?c. What is the maximum profit per unit that thefirm can earn from its product?180160Price, 140costs, 120and10080604020revenueper unit(dollars)0IXIINMCATCMR1 2 3 4 5 6 7 8 9 10 11 12Quantity of output(units per hour)

2. Another monopolist graph is shown (right), use the graph to answer 2a - 2c. a. In order to maximize its profit, how much output should the monopoly produce? Price, costs, b. In order to maximize its profit (or minimize its loss), what price should the monopoly charge for and its product? revenue c. What is the maximum profit per unit that the firm can earn from its product? per unit (dollars) 180 160 140 120 100 80 60 40 20 MC ATC MR D 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of output (units per hour)

2. Another monopolist graph is shown (right), use the graph to answer 2a - 2c. a. In order to maximize its profit, how much output should the monopoly produce? Price, costs, b. In order to maximize its profit (or minimize its loss), what price should the monopoly charge for and its product? revenue c. What is the maximum profit per unit that the firm can earn from its product? per unit (dollars) 180 160 140 120 100 80 60 40 20 MC ATC MR D 0 1 2 3 4 5 6 7 8 9 10 11 12 Quantity of output (units per hour)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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