A monopolist produces 14,000 units of output and charges $14 per unit. Its MR is $10, its MC is $10, its ATC is $12 and AVC is $9, then this firm in order to maximize its profit, it should produce where: Select one: a. AVC equals price. b. MC equals price. c. ATC equals price. d. MR equals MC.
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- Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm’s total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What is firm's ATC.You are a monopolist facing the following demand schedule. You produce an output at a constant average and marginal cost of $12. Price Quantity $20 1 18 2 16 3 14 4 Calculate marginal revenue (MR) for each level of output. Find the profit-maximizing price and quantity. How much economic profit will you earn?Currently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c. What is the firm's average total cost?
- A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answerhey how are you a)Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. b)Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. c)Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.Exercise 3.3. Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a. If the elasticity of demand for the product is -2, find the marginal cost of the last unit produced. b. What is the firm's percentage markup of price over marginal cost? c. Suppose that the average cost of the last unit produced is $15 and the firm's fixed cost is $2000. Find the firm's profit.
- Consider a monopolist with the following demand curve. Price: 24, 22 , 20, 18, 16, 14, 12, 10, 8, 6 Quantity Demanded: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 [All answers are integers with no units.] 1.If this firm has a marginal cost of $12 per unit, how many will they produce? 2.What will their profit be? 3.What will consumer surplus be? (Rectangle method!) 4.What is the efficient quantity?Price or Cost (per unit) $13 12 11 10 8 5 3 2 1 2 3 4 5 Quantity (units per hour) MC ATC MR Demand Refer to the figure. If this monopolist were forced to behave as if it operated in perfect competition, the profit-maximizing rate of output would beQuestion 3 Draw the demand, marginal revenue, average total cost, and marginal cost curves for a pure monopolist. Show the profit - maximizing level of output, the profit - maximizing price, and the amount of profit.
- Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm’s total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's MC.Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm’s total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits?Suppose a pure monopolist faces the following cost data, as shown by the table on the left, and the demand schedule, as shown on the right. a. Calculate the missing TR and MR amounts. Instructions: Enter your answers rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Production and Costs Demand Total Product Average Fixed Cost Average Variable Cost Average Total Cost Marginal Cost Price Quantity Demanded Total Revenue Marginal Revenue 0 — — — — $115 0 $0.00 — 1 $60.00 $45.00 $105.00 $45 100 1 $101.00 2 30.00 42.50 72.50 40 83 2 3 20.00 40.00 60.00 35 71 3 4 15.00 37.50 52.50 30 63 4 5 12.00 37.00 49.00 35 55 5 6 10.00 37.50 47.50 40 48 6 7 8.57 38.57 47.14 45 42 7 8 7.50 40.63 48.13 55 37 8 9 6.67 43.33 50.00 65 33 9 10 6.00 46.50 52.50 75 29 10