Figure 15-3Revenueand costper unit$30MC24ATCE2220.802018DemandMR6283104QuantityFigure 15-3 shows the cost and demand curves for a monopolistic competitorRefer to Figure 15-3. The profit-maximizing output and price for the monopolistic competitor areO output = 62; price = $18.O output = 104; price = $20.80.O output = 83; price = $22.O output = 62; price = $24.

The Monopolistic firm maximizes the profit where the MR=MC.

Answered: Figure 15-3 Revenue and cost per unit…

Figure 15-3 Revenue and cost per unit $30 MC 24 ATC 22 20.80 20 18 Demand MR 62 83 104 Quantity Figure 15-3 shows the cost and demand curves for a monopolistic competitor

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

100%

Figure 15-3
Revenue
and cost
per unit
$30
MC
24
ATC
E
22
20.80
20
18
Demand
MR
62
83
104
Quantity
Figure 15-3 shows the cost and demand curves for a monopolistic competitor
Refer to Figure 15-3. The profit-maximizing output and price for the monopolistic competitor are
O output = 62; price = $18.
O output = 104; price = $20.80.
O output = 83; price = $22.
O output = 62; price = $24.

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