Hello, I am stuck on a few microeconomics questions. Please help and thanks in a

Question

Hello,

I am stuck on a few microeconomics questions. Please help and thanks in advance!

ATC Quantity Consider the monopolist described in the above figure. The firm can maximize profit by producing a. zero units b. Qi units c. 2 units. d. Q3 units. e. 24 units Consider the monopolist described in the above figure. If the firm en- gages in profit-maximizing behavior, what price will it charge? a. Pi b. P2 c. Ps d. P4 e. Ps Consider the monopolist described in the above figure. If the firm en- gages in profit-maximizing behavior, economic profit per unit of out- put will be a. zero. b. P2. c. P4 minus P2 d. Ps minus P4 e. indeterminate. A Monopoly Firm Quantity Marginal Revenue Price per Unit $17 16 15 14 13 12 Marginal Cost s 0 16 14 12 10 S0 10 12 Refer to the table above. The price the monopoly will charge is a. $13 b. $14 c.$12. d. $16.

Explanation / Answer

Answer.)

Q5.) Q2

Profit-maximizing level of quantity is that quantity at which marginal revenue equals marginal cost. Note its only at output level Q2.

Q6.) P5

For a monopoly, profit-maximizing price level is the value of demand curve at profit maximizing quantity. Note profit-miximizng quantity is Q2 so that profit maximizing price would be P5.

Q7.) ZERO

Economic profit per unit of output is the difference between price and ATC at profit-maximing quantity. Note at Q2 , Price and ATC both are P5 therefore zero economic profit.

Q8.) $13.

Profit-maximizing level of quantity is that quantity at which marginal revenue equals marginal cost. Note its only at output level. at 4 units of output MR and MC both are 10, therefore, Profit-maximizing level of price is $13.

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