Determine the profit-maximizing output and price

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Reference no: EM13867175

The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist

a.       Determine the profit-maximizing output and price. Explain. Just don't state the answer

b.      What price and output would prevail if this firm's product were sold by price-taking in a perfectly competitive market?Explain. Just don't state the answer

c.       What conclusion can draw between a firm operating as a competitor and  monopolist in terms of

i)                    Output produced

ii)                   Price charge

 

Price($)

120

 

 

 

 

 

 

MC

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

80

 

 

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

D

 

0

 

 

 

 

 

MR

 

 

 

 

 

 

0

1

2

3

4

5

6

7

8

9

10   Quantity

 

Question 7

The supply curve of a single firm under perfect competition is that portion of the MC curve above the minimum point of the AVC curve. How about the supply curve of the monopolist? Does the monopolist have a supply curve? Discuss

Reference no: EM13867175

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