Sketch a possible marginal revenue curve for this firm

Reference no: EM131240700

The following graph shows the demand curve and the marginal cost curve for a monopolistic firm producing electric cars.

a. Sketch a possible marginal revenue curve for this firm.

b. On the horizontal axis, label the profit-maximizing level of production as Q1. On the vertical axis, label the price P1 that the firm will charge at the profit maximizing level of production.

c. Label the area of deadweight loss in the graph you draw for part (b).

d. How do the monopolistic price and quantity compare to those of competitive market equilibrium?

Reference no: EM131240700

Questions Cloud

Dependent or the independent variable : 1) When studying a cause and effect relationships, usually, is the cause the dependent or the independent variable? Is the effect the dependent or the independent variable?

Find the magnitude of the net force on the object : 1. The two forces ({bf{vec F}}_1) and ({bf{vec F}}_2)shown in the figure (Figure 1) (looking down) act on a 15.0-({rm kg}) object on a frictionless tabletop. a. If (F_1)=13.0 ({rm N}) and (F_2)=21.0 ({rm N}) , find the magnitude of the net force on..

About sweezy oligopoly : Which of the following is true about a Sweezy oligopoly?

What is the price at the growers shutdown point : Poinsettia growing is a perfectly competitive industry and all poinsettia growers have the same costs. What is the price at the grower's shutdown point?

Sketch a possible marginal revenue curve for this firm : On the horizontal axis, label the profit-maximizing level of production as Q1. On the vertical axis, label the price P1 that the firm will charge at the profit maximizing level of production.

Simply use the exchange rate to make the conversion : How large is the Japanese economy? Japanese GDP is 2010 was 480 trillion Yen (US GDP is 14.S trillion). The exchange rate in 2010 was 87.8 yen per Dollar. What is the ratio of Japanese GDP to U.S. GDP if we don't take into account the differences in ..

Object connected to a spring to the ceiling : The alien attaches a 2kg object connected to a spring to the ceiling of his spacecraft. When the spaceship is accelerating at 5m/s 2 upward, the spring extends 0.1m. How much does the spring extend when the spaceship is accelerating at 15m/s 2 upw..

Privately motivated innovation decisions of firms might lead : Game theory suggests that, in the absence of patents, the privately motivated innovation decisions of firms might lead to:

Oligopoly consisting of four identical firms producing good : Consider a Cournot oligopoly consisting of four identical firms producing good X. If the firms produce good X at a marginal cost of $7 per unit and the market elasticity of demand is −2, determine the profit-maximizing price.

User Account

All Pages