130 Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost by and its average total cost by

Economics Today and Tomorrow, Student Edition
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Chapter5: Buying The Necessities
Section: Chapter Questions
Problem 20AA
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Question
Total Output
1
2
3
4
5
6
7
80
9
10
A
B
8
D
$20; $27.33
$10; $10.40
$24; $27.33
Price
$30; $20.50
$100
90
80
70
60
50
40
30
20
Marginal Revenue
10
$100
80
60
40
20
-20
-40
-60
Average Total Cost
-80
$100.00
63.00
52.67
49.50
49.60
50.00
52.29
55.75
60.67
67.60
130
Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost
and its average total cost by_
by
$30
26
32
Marginal Cost
40
50
52
66
80
100
Transcribed Image Text:Total Output 1 2 3 4 5 6 7 80 9 10 A B 8 D $20; $27.33 $10; $10.40 $24; $27.33 Price $30; $20.50 $100 90 80 70 60 50 40 30 20 Marginal Revenue 10 $100 80 60 40 20 -20 -40 -60 Average Total Cost -80 $100.00 63.00 52.67 49.50 49.60 50.00 52.29 55.75 60.67 67.60 130 Refer to the data for a nondiscriminating monopolist. At its profit-maximizing output, this firm's price will exceed its marginal cost and its average total cost by_ by $30 26 32 Marginal Cost 40 50 52 66 80 100
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