1.A monopoly\'s MC and MR intersects at a price of $7. If you extends this point
ID: 1189416 • Letter: 1
Question
1.A monopoly's MC and MR intersects at a price of $7. If you extends this point above to demand curve, the intersection point touches at a price of $12. In the MC and MR intersection point, Q is 200, and AC is $4. The AC curve touches at $5 in the demand curve. Please calculate the monopoly's TR, TC and Profit.
Compare demand curves of a monopoly and a monopolistically competitive firm.
.A monopolistically competitive firm's MC and MR intersects at a price of $6. If you extends this point above to demand curve, the intersection point touches at a price of $10. In the MC and MR intersection point, Q is 100, and AC is $10. The AC curve touches at $10 in the demand curve. Please calculate the monopolistically competitive firm's TR, TC and Profit.
Explanation / Answer
monopoly's TR, TC and Profit.
TR = P*Q
=12*200
=2,400
TC = AC*Q
=4*200
=800
Profit = TR-TC
=2,400-800
=$1,600
Demand cuve of monopolistic market relatively fexible as compared to the monopoly
Monopolistic TC,TR and profit
TR = P*Q
=10*100
=1000
TC = AC*Q
=10*100
=1000
Profit = TR-TC
=1000-1000
=0
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