$55 * 50 $45 MC ATC $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. The monopolist will maximize its profit by choosing Output (Q) level and charging Price Select one: O a. 120; $35 O b. 160; $25 Oc. 120; $20 Od. 160; $30

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q28 and q29
$55
$50
MC
ATC
$45
$40
$35
$30
$25
$20
Demand = P
$15
$10
$5
MR
$0
40
80
120
160
200
240
Output (Q)
The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. The monopolist will
maximize its profit by choosing Output (Q) level
and charging Price
Select one:
O a.
120; $35
O b. 160; $25
O c.
120; $20
O d. 160; $30
Next page
$$
Transcribed Image Text:$55 $50 MC ATC $45 $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. The monopolist will maximize its profit by choosing Output (Q) level and charging Price Select one: O a. 120; $35 O b. 160; $25 O c. 120; $20 O d. 160; $30 Next page $$
$55
$50
$45
MC
ATC
$40
$35
$30
$25
$20
Demand = P
$15
$10
$5
MR
$0
40
80
120
160
200
240
Output (Q)
The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. At the profit
maximizing Output (Q) level, the monopolist will earn a Total Profit of:
Select one:
O a. $2,000
O b. $1,200
O c. $2,200
O d. $800
$
Transcribed Image Text:$55 $50 $45 MC ATC $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. At the profit maximizing Output (Q) level, the monopolist will earn a Total Profit of: Select one: O a. $2,000 O b. $1,200 O c. $2,200 O d. $800 $
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