The graph shows the demand curve and marginal revenue curve

The graph shows the demand curve and marginal revenue curve of At Home, Inc. Price and cost (dolliars per player) a producer of DVD players in monopolistic competition. Draw the firm\'s marginal cost curve if At Home produces 40 DVD players a week Label it Draw a point at the proft-maximizing quantity and price. it average total cost at the profit-maximizing quantity is 210 $180 a player. At Home\'s economic profit is Quantity (DVD plxyers per week) Draw only the objects specified in the question Click the graph choose a tool in the palette and tollow the instructions to cresate your graph 96 5 4 6 8 9

Solution

Average Total Cost at Profit Maximizing Price will be $180

Profit Maximizing Price such that when MR=MC (Marginal Revenue Curve meets Marginal Cost Curve)

Total Cost=ATC*Quantity=$180*40=$72000

Price can be calculated with the help of demand curve as by drawing perpendicular line from Q=40 till Demand curve. Now this perpendicular line intersects demand curve take that coordinate on Y axis and that is our price =$240

Revenue=Price *Quantity=$240*40=$96000

Profit=TR-TC=$96000--$72000=$24000