KINGocoueae thenes MG 640 answers in the graph above ten sho

KINGocoueae thenes MG 640 answers in the graph above ten show 10 15 20 25 30 35 40 45 Q

Solution

Price Quantity Total Revenue Average Revenue

18 10 180 18

17 15 255 17

16 20 320 16

15 25 375 15

14 30 420 14

13 35 455 13

12 40 480 12

B. Monopolist must produce up to that level of output where MR = MC

From the graph we can see at an output level of 20 units And price of $16 the MC curve intersect MR curve.

Hence, monopolist output = 20 units

Price = $ 16 per unit

C. monopolist price = $ 16 per unit

D. Under perfect competition the firms are price takers the profit maximizing output can be determined by equating P to MC that is when MC curve intersect Demand curve.

As we can see from above graph MC curve intersect Demand curve at an output level 30 and price $ 14 per unit.