Refer to the figure above. The profit-maximizing price for the monopolist is: $7 $8 $6 $5 MCPrice4 10ATC$8每6华4$ 3MRQuantity10203040

When talking about Profit Maximizing prive of a monopoly firm, it can be said that it has different pricing decision to the perfectly competitive firm.A Monopolist will charge a price that lies on the demand curve and corresponding to the point of intersection of MR and MC. According to the given, MR and MC cuts at the output of 20 units and the price on demand curve at this output level is $8. Therefore, the profit Maximizing price of the Monopolist is: $8

Answered: MC Price ATC $9 $8 每6 44 $3 MR Quantity…

Business

Economics

MC Price ATC $9 $8 每6 44 $3 MR Quantity 10 20 30 40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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