Scenario 15-2 A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $32, its average revenue is $42, and its average total cost is $36. Refer to Scenario 15-2. At Q = 500, what is the firm's marginal cost? $36 $32 less than $32
Scenario 15-2 A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal revenue is $32, its average revenue is $42, and its average total cost is $36. Refer to Scenario 15-2. At Q = 500, what is the firm's marginal cost? $36 $32 less than $32
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 8E
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Transcribed Image Text:Scenario 15-2
A monopoly firm maximizes its profit by producing 500 units output (so Q = 500). At that level of output, its marginal
revenue is $32, its average revenue is $42, and its average total cost is $36.
Refer to Scenario 15-2. At Q = 500, what is the firm's marginal cost?
$36
$32
less than $32
greater than $36
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