Consider the graph shown below: The graph shown shows the cost, demand and margi
ID: 1101192 • Letter: C
Question
Consider the graph shown below:
The graph shown shows the cost, demand and marginal revenue curves for a monoploy. Use the graph to answer the question (1)-(10).
For question 1-8, fill the blank.
(1) The curve labeled "X" is ________________________.
(2) The curve labeled "W" is _______________________.
(3) The curve labeled "Y" is ________________________.
(4) The curve labeled "Z" is ________________________.
(5) Profit maximizing output is ______________________.
(6) Profit maximizing price is _______________________.
(7) Each unit costs _________ to the monopolist.
(8) The profit of the monopolist is ________________.
For question 9 and 10, mark if the statments is True (T) or False (F).
(9) The monoplist is producing at the inelastic part of its demand curve. [ T / F ]
(10) This monopolist is making economic profits. [ T / F ].
Explanation / Answer
1. Demand or Average Revenue
2. Marginal Revenue
3. Average Total Cost
4. Marginal Cost
5. 20 units
6. $30 per unit
7. $20
8. $200
9. False
10. True