Styles ECON2113 Chapter 8 Assignment-Monopolist $/Q MC ATC AVC 20 10 L MR 0 50 1
ID: 1161583 • Letter: S
Question
Styles ECON2113 Chapter 8 Assignment-Monopolist $/Q MC ATC AVC 20 10 L MR 0 50 100 150 200 1. Using the figure above, what is the optimal quantity of goods for the firm to produce? (2 points) 2. Using the figure above, what is the optimal price for the quantity of goods for the firm to produce? (2 points) 3. Using the figure above, what is the total revenue for the firm? (2 points) 4. Using the figure above, what is the total cost for the firm? (2 points) 5. Using the figure above, what is profit/loss for the firm? (2 points) age 1 of 1 Bg words English (United States)Explanation / Answer
For a monopolist, the optimal quantity is determined by the rule MR = MC. This gives Q = 117 units.
Similarly, the optimal price is found at this quantity on the demand function which is found at $24 per unit
Total revenue receives = price x quantity = 117 x 24 = $2808
Total cost is given by ATC x quantity = 117 x 20 = $2304
Profit = TR – TC = $2808 - $2304 = $468