The figure below shows the total cost and total revenue curves for a monopolist. The profit -maximizing output for the monopolist is 1 unit 2 units 3 units 4 units 5 units The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing output for the monopolist is TC $100 90 80 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 89 1 unit 2 units 3 units TR 4 units Q/t

The figure below shows the total cost and total revenue curves for a monopolist. The profit -maximizing output for the monopolist is 1 unit 2 units 3 units 4 units 5 units The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing output for the monopolist is TC $100 90 80 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 89 1 unit 2 units 3 units TR 4 units Q/t

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 29CTQ: Imagine that you ale managing a small firm and thinking about entering the market of a monopolist....

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Consider the table below: 0 TR MR AR-P 0 0 10 0 1 900 900 1.200 1200 $1200 2 1600 700 2100 500 1050 3 2700 600 900 7 2400 300 300 750 5 3.000 600 3000 0 600 How much will this monopolist produce and how much profit will he carn? a) He will produce 5 units and earn zero profits. b) He will produce 2 units and earn profits of $500. c) He will produce 4 units and earn $600. d) None of the above.
28 $55 $50 $45 MC АТС I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 $0 MR 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: Sel one: а. $1,200 b. $2,200 c. $800 d. $2,000 $$