VC FC TC AVC AFC ATC MC 0.00 3,780.00 NA NA NA NA 1 400.00 2 700.00 3 900.00 4 1,000.00 1,050.00 1,200.00 7 1,400.00 8. 2,000.00 2,700.00 9 10 4,000.00 2. Graph the market demand and the monopoly marginal revenue MR. Recall that the marginal revenue of the monopoly has slope that is two times greater (in absolute value) than the demand curve. a. Find the profit maximizing quantity Qm monopoly chooses to produce. b. Find the monopoly price Pm. c. Calculate monopoly economic profit.
VC FC TC AVC AFC ATC MC 0.00 3,780.00 NA NA NA NA 1 400.00 2 700.00 3 900.00 4 1,000.00 1,050.00 1,200.00 7 1,400.00 8. 2,000.00 2,700.00 9 10 4,000.00 2. Graph the market demand and the monopoly marginal revenue MR. Recall that the marginal revenue of the monopoly has slope that is two times greater (in absolute value) than the demand curve. a. Find the profit maximizing quantity Qm monopoly chooses to produce. b. Find the monopoly price Pm. c. Calculate monopoly economic profit.
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 11PAE
Related questions
Question
Please answer question 2 a to e
![1. Consider a market with demand D: P = 2,050 – 75Q that is served by a
monopoly. The structure of the monopolistic firm's costs is given in the table
below. Calculate missing values.
a. Graph the fixed, variable and total cost curves.
b. Graph the marginal, average variable and average total cost curves.
b.
VC
FC
TC
AVC
AFC
АТС
MC
0.00
3,780.00
NA
NA
NA
NA
1
400.00
2
700.00
3
900.00
4
1,000.00
5
1,050.00
1,200.00
7
1,400.00
8
2,000.00
2,700.00
9.
10
4,000.00
2. Graph the market demand and the monopoly marginal revenue MR. Recall
that the marginal revenue of the monopoly has slope that is two times
greater (in absolute value) than the demand curve.
a. Find the profit maximizing quantity Qm monopoly chooses to produce.
b. Find the monopoly price Pm.
c. Calculate monopoly economic profit.
d. Show that the monopoly produces inefficiently.
e. Show the price Pc and quantity Qc the firm would produce if it behaved as
a competitive firm.
3. Label axes and all curves in the diagram below representing a monopoly.
a. Show the quantity Qm and price Pm the monopoly will choose to maximize
the monopoly profit.
b. Show the quantity Qc and price Pc the monopoly would choose if it behaved
as competitive firm.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e42a2b2-efb8-46eb-8cec-2e3f314c850e%2F0825dee4-92eb-4344-9281-052175ef272a%2Fmdj9lm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Consider a market with demand D: P = 2,050 – 75Q that is served by a
monopoly. The structure of the monopolistic firm's costs is given in the table
below. Calculate missing values.
a. Graph the fixed, variable and total cost curves.
b. Graph the marginal, average variable and average total cost curves.
b.
VC
FC
TC
AVC
AFC
АТС
MC
0.00
3,780.00
NA
NA
NA
NA
1
400.00
2
700.00
3
900.00
4
1,000.00
5
1,050.00
1,200.00
7
1,400.00
8
2,000.00
2,700.00
9.
10
4,000.00
2. Graph the market demand and the monopoly marginal revenue MR. Recall
that the marginal revenue of the monopoly has slope that is two times
greater (in absolute value) than the demand curve.
a. Find the profit maximizing quantity Qm monopoly chooses to produce.
b. Find the monopoly price Pm.
c. Calculate monopoly economic profit.
d. Show that the monopoly produces inefficiently.
e. Show the price Pc and quantity Qc the firm would produce if it behaved as
a competitive firm.
3. Label axes and all curves in the diagram below representing a monopoly.
a. Show the quantity Qm and price Pm the monopoly will choose to maximize
the monopoly profit.
b. Show the quantity Qc and price Pc the monopoly would choose if it behaved
as competitive firm.
![](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e42a2b2-efb8-46eb-8cec-2e3f314c850e%2F0825dee4-92eb-4344-9281-052175ef272a%2Fi9u4u9b_processed.jpeg&w=3840&q=75)
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