This monopolist has a marginal cost of $6 a total fixed cost of $20. The demand schedule faced by this monopolist is detailed in the table below: $0 $2 $4 $6 $8 $10 $12 $14 $16 Monopolist's Demand Schedule Price Quantity 10 9 8 7 6 5 4 3 2
This monopolist has a marginal cost of $6 a total fixed cost of $20. The demand schedule faced by this monopolist is detailed in the table below: $0 $2 $4 $6 $8 $10 $12 $14 $16 Monopolist's Demand Schedule Price Quantity 10 9 8 7 6 5 4 3 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I will rate and like, thank you! Easy economics question.
Create graph that includes:
-
- Demand curve, marginal cost, and marginal revenue.
- Identify the profit-maximizing quantity and price for this monopolist. To do this you will need to determine marginal revenue at each level of output. Choose output that satisfies the monopolist’s profit maximizing condition of MR = MC.
- Does this firm earn a profit? How much profit if they do?
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