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$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 Oc. $500 O d. $2,500

$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 Oc. $500 O d. $2,500

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q20 and Q21
MC ATC AVC P3 P2 a P1 Q Q Q3 Output (Q) The diagram above shows cost curves for a Perfectly Competitive firm. In the short-run, its Short-Run Supply Curve is its MC curve at prices higher than: Select one: O a. P1 Ob. P2 O c. P3 O d. P4 $$$
Transcribed Image Text:MC ATC AVC P3 P2 a P1 Q Q Q3 Output (Q) The diagram above shows cost curves for a Perfectly Competitive firm. In the short-run, its Short-Run Supply Curve is its MC curve at prices higher than: Select one: O a. P1 Ob. P2 O c. P3 O d. P4 $$$
$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 O c. $500 O d. $2,500 Next page
Transcribed Image Text:$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 O c. $500 O d. $2,500 Next page
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