(Table: Monopoly) The monopolist represented in the table has a marginal cost of
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Question
(Table: Monopoly) The monopolist represented in the table has a marginal cost of $4 times the quantity produced. The profit-maximizing level of production for this monopolist would be _______units.15 9 18 12 (Figure: Monopolist Production) Based on the graph, if the marginal cost of production is constant at $20 per unit produced, then the monopolist would produce _________while the perfect competitor would produce _________.
25 units; 50 units 20 units; 20 units 20 units; 40 units 10 units; 40 units
Explanation / Answer
Answer.)
Q1.) 12
Note that at Quantity =12 , MR>MC and after that MC> MR which shows losses.
Q2.) 20 units; 40 units
For monopolist quantity , Check MR=MC and since for a competitive output, AR = MR therefore in case of perfect competition, Check Demand = MC.
Q P TR MR MC 0 90 0 -- -- 3 81 243 243 12 6 72 432 189 18 9 63 567 135 27 12 54 648 81 36 15 45 675 27 45 18 36 648 -27 54 21 27 567 -81 63 24 18 432 -135 72 27 9 243 -189 81 30 0 0 -243 90Related Questions
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