What quantity (Q) will the profit - maximizing monopolist below produce, what price (P) will they charge, and how much will their profit or loss be? a.) Q = 8 units P = $5,000 Profit = $40,000 b.) Q = 8 units P = $7,000 Profit = $ 24,000 c.) Q = 8 units P = $4,000 Profit = $32,000 d.) Q = 8 units P = $7,000 Profit = $56,000 Price (in thousands of dollars) y C C $11 S = MC $10 ATC $9 $8 $7 $6 $5 AVC ATC $4 AVC $3 Firm Demand $2 $1 O 2 4 6 8 10 12 14 Quantity of Market = Firm MR Output

What quantity (Q) will the profit - maximizing monopolist below produce, what price (P) will they charge, and how much will their profit or loss be? a.) Q = 8 units P = $5,000 Profit = $40,000 b.) Q = 8 units P = $7,000 Profit = $ 24,000 c.) Q = 8 units P = $4,000 Profit = $32,000 d.) Q = 8 units P = $7,000 Profit = $56,000 Price (in thousands of dollars) y C C $11 S = MC $10 ATC $9 $8 $7 $6 $5 AVC ATC $4 AVC $3 Firm Demand $2 $1 O 2 4 6 8 10 12 14 Quantity of Market = Firm MR Output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A (single-price) monopolist is maximizing profits when A. the marginal revenue associated with the last unit of output is equal to its marginal cost B. the price at which they sold the last unit of output is equal to its marginal cost C. the average revenue associated with the last unit of output is equal to its marginal cost
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MC ATC P2 P3 P4 MR Q, Q2 Quantity In the figure above, if the monopolist maximizes profit, how many units of output will be sold and at what price? Quantity = Q2, Price = P1 Quantity = Q1, Price = P3 Quantity = Q1, Price = P4 Quantity = Q2, Price = P2 Quantity = Q1, Price = P1 Price