Assume that we have only one firm producing tennis balls. See the diagram below showing the market for tennis balls and find the: Price($) 115 18 11 19 0 20 20 40 40 MC ATC MR D Quantity Use the Graph below to answer the questions given below i. the quantity of output maximizing the profit the price monopolist is charging, ii. value of the average revenue at the profit maximising level of production, iii. value of the marginal cost at the profit maximising level of production, iv. value of marginal revenue at the profit maximising level of production, V. vi. value of the average total cost What is the value of total revenue, total cost and total profit at the profit maximizing quantity? vii. What would be the efficient level of output and price if the market was perfectly competitive?
Assume that we have only one firm producing tennis balls. See the diagram below showing the market for tennis balls and find the: Price($) 115 18 11 19 0 20 20 40 40 MC ATC MR D Quantity Use the Graph below to answer the questions given below i. the quantity of output maximizing the profit the price monopolist is charging, ii. value of the average revenue at the profit maximising level of production, iii. value of the marginal cost at the profit maximising level of production, iv. value of marginal revenue at the profit maximising level of production, V. vi. value of the average total cost What is the value of total revenue, total cost and total profit at the profit maximizing quantity? vii. What would be the efficient level of output and price if the market was perfectly competitive?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 29CTQ: Imagine that you ale managing a small firm and thinking about entering the market of a monopolist....
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Transcribed Image Text:Assume that we have only one firm producing tennis balls. See the
diagram below showing the market for tennis balls and find the:
Price($)
115
18
11
19
0
20
20
40
40
MC
ATC
MR
D
Quantity
Use the Graph below to answer the questions given below
i.
the quantity of output maximizing the profit the price monopolist is charging,
ii.
value of the average revenue at the profit maximising level of production,
iii.
value of the marginal cost at the profit maximising level of production,
iv.
value of marginal revenue at the profit maximising level of production,
V.
vi.
value of the average total cost
What is the value of total revenue, total cost and total profit at the
profit maximizing quantity?
vii.
What would be the efficient level of output and price if the market was
perfectly competitive?
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