According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget to subtract total cost from total revenue. There are three curving lines, MC1, ATC1, and AVC1, and there are two straight lines with downward slopes, the dotted line MR1 and the solid line D1. The curved line MC1 starts at approximately (18,8), curves down to cross MR1 at approximately (40,4), curves up to cross AVC1 at approximately (54, 6), crosses D1 at approximately (60, 7), crosses ATC1 at approximately (65,8), and ends at approximately (88, 19). The curved line AVC1 starts at about (11, 12), curves down to cross MR1 at approximately (35,6), curves down to cross MC1 at approximately (54,6), curves up to cross D1 at approximately (65, 6), and curves up to approximately (85,8). The curved line ATC1 starts and crosses MR1 at approximately (20,14), curves down to cross D1 at approximately (50,9), curves down to cross MC1 at approximately (65,8), and curves up to approximately (97,11). The straight dotted line MR1 starts at approximately (15,16), crosses ATC1 at approximately (20, 14), crosses AVC1 at approximately (35,6), crosses MC1 at approximately (40,4), and ends at approximately (48,0). The straight solid line D1 starts at approximately (17,18), crosses ATC1 at approximately (50,9), crosses MC1 at approximately (60,7), crosses AVC1 at approximately (65, 6), and ends at approximately (83,0). Select one: a. $-120 b. $240 C. $60 d. $80 Clear my choice
According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget to subtract total cost from total revenue. There are three curving lines, MC1, ATC1, and AVC1, and there are two straight lines with downward slopes, the dotted line MR1 and the solid line D1. The curved line MC1 starts at approximately (18,8), curves down to cross MR1 at approximately (40,4), curves up to cross AVC1 at approximately (54, 6), crosses D1 at approximately (60, 7), crosses ATC1 at approximately (65,8), and ends at approximately (88, 19). The curved line AVC1 starts at about (11, 12), curves down to cross MR1 at approximately (35,6), curves down to cross MC1 at approximately (54,6), curves up to cross D1 at approximately (65, 6), and curves up to approximately (85,8). The curved line ATC1 starts and crosses MR1 at approximately (20,14), curves down to cross D1 at approximately (50,9), curves down to cross MC1 at approximately (65,8), and curves up to approximately (97,11). The straight dotted line MR1 starts at approximately (15,16), crosses ATC1 at approximately (20, 14), crosses AVC1 at approximately (35,6), crosses MC1 at approximately (40,4), and ends at approximately (48,0). The straight solid line D1 starts at approximately (17,18), crosses ATC1 at approximately (50,9), crosses MC1 at approximately (60,7), crosses AVC1 at approximately (65, 6), and ends at approximately (83,0). Select one: a. $-120 b. $240 C. $60 d. $80 Clear my choice
Chapter15: Imperfect Competition
Section: Chapter Questions
Problem 15.10P: Inverse elasticity rule Use the first-order condition (Equation 15.2 ) for a Cournot firm to show...
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Transcribed Image Text:According to the figure below, what is the maximum profit of this monopoly? Hint: don't forget
to subtract total cost from total revenue.
There are three curving lines, MC1, ATC1, and AVC1, and there are two straight lines with
downward slopes, the dotted line MR1 and the solid line D1. The curved line MC1 starts at
approximately (18,8), curves down to cross MR1 at approximately (40,4), curves up to cross
AVC1 at approximately (54, 6), crosses D1 at approximately (60, 7), crosses ATC1 at
approximately (65,8), and ends at approximately (88, 19). The curved line AVC1 starts at about
(11, 12), curves down to cross MR1 at approximately (35,6), curves down to cross MC1 at
approximately (54,6), curves up to cross D1 at approximately (65, 6), and curves up to
approximately (85,8). The curved line ATC1 starts and crosses MR1 at approximately (20,14),
curves down to cross D1 at approximately (50,9), curves down to cross MC1 at approximately
(65,8), and curves up to approximately (97,11). The straight dotted line MR1 starts at
approximately (15,16), crosses ATC1 at approximately (20, 14), crosses AVC1 at approximately
(35,6), crosses MC1 at approximately (40,4), and ends at approximately (48,0). The straight
solid line D1 starts at approximately (17,18), crosses ATC1 at approximately (50,9), crosses MC1
at approximately (60,7), crosses AVC1 at approximately (65, 6), and ends at approximately
(83,0).
Select one:
a.
$-120
b.
$240
C.
$60
d.
$80
Clear my choice
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