a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors profit-maximizing output and price? Output: 75 thousands Price: $ 70 thousands Suppose that the government of Lidia imposes a price ceiling of $35.000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands

a. Add the marginal revenue curve to the graph above (starting at zero). Plot only the end points. b. What are Sol-Motors profit-maximizing output and price? Output: 75 thousands Price: $ 70 thousands Suppose that the government of Lidia imposes a price ceiling of $35.000 per car. What is the firm's profit-maximizing output now? Profit-maximizing output: thousands d. What would be the output if the graph represented a perfectly competitive industry rather than a monopoly? Output: thousands

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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