The accompanying figure shows the demand curve, marginal revenue curve, marginal cost eurve and average total cost curve for a monopolist. 30 28 26 24 22 20 18- 16 ATC 12 10 -MC 4 MR 2 3 6 9 10 Quantity (units/day! 1) This monopolist maximizes its profit by producing charging a price of 4 units per day and 18 per unit 2) The socially optimal level of output is 8 units per day. 3) At this monopolist s profit-maximizing level of output what is its economic profit or loss? The economie loss is $-72 at the profit maximizing level. 4) At his monopolist's socially optimal level of output, what is its economic profit or loss? The Economic loss is $-64 at the socially optimal level. 5) At this monopolist's profit-maximizing level of output what the deadweight loss to society! 14 of 118 words Focus 31 பொ/து *uu

The accompanying figure shows the demand curve, marginal revenue curve, marginal cost eurve and average total cost curve for a monopolist. 30 28 26 24 22 20 18- 16 ATC 12 10 -MC 4 MR 2 3 6 9 10 Quantity (units/day! 1) This monopolist maximizes its profit by producing charging a price of 4 units per day and 18 per unit 2) The socially optimal level of output is 8 units per day. 3) At this monopolist s profit-maximizing level of output what is its economic profit or loss? The economie loss is $-72 at the profit maximizing level. 4) At his monopolist's socially optimal level of output, what is its economic profit or loss? The Economic loss is $-64 at the socially optimal level. 5) At this monopolist's profit-maximizing level of output what the deadweight loss to society! 14 of 118 words Focus 31 பொ/து *uu

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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