1. In one graph, plot the MR and AR in the table on page 2 of this study guide and the MC and ATC in the table below in one graph (Revenues and Costs in the vertical axis and output Qin the horizontal axis). Label your graph properly. Output Level 1 2 3 4 5 6 7 8 9 MC 4 6 8 10 12 14 16 18 20 ATC 14 10 9 9.5 10 11 11.5 12 13 a. What is the profit maximizing output and price of the monopolist? How much is the profit per unit and total profit at this output level? c. Shade the DWL in your graph and indicate as Q* the efficient output level b.
1. In one graph, plot the MR and AR in the table on page 2 of this study guide and the MC and ATC in the table below in one graph (Revenues and Costs in the vertical axis and output Qin the horizontal axis). Label your graph properly. Output Level 1 2 3 4 5 6 7 8 9 MC 4 6 8 10 12 14 16 18 20 ATC 14 10 9 9.5 10 11 11.5 12 13 a. What is the profit maximizing output and price of the monopolist? How much is the profit per unit and total profit at this output level? c. Shade the DWL in your graph and indicate as Q* the efficient output level b.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter9: Price Takers And The Competitive Process
Section: Chapter Questions
Problem 15CQ
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Transcribed Image Text:1.
In one graph, plot the MR and AR in the table on page 2 of this study guide and the MC and ATC in the table below
in one graph (Revenues and Costs in the vertical axis and output Q in the horizontal axis). Label your graph
properly.
Output Level
1
2
3
4
5
6
7
8
9
MC
4
6
8
10
12
14
16
18
20
ATC
14
10
9
9.5
10
11
11.5
12
13
a.
b.
What is the profit maximizing output and price of the monopolist?
How much is the profit per unit and total profit at this output level?
Shade the DWL in your graph and indicate as Q* the efficient output level
C.
Transcribed Image Text:Output Price
0
25
24
23
22
21
20
GUAWNHO
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
19
18
17
16
15
14
13
12
11
10
Total
Revenue
0
24
46
66
84
100
114
126
136
144
150
154
156
156
154
150
Marginal
Revenue
24
22
20
18
16
14
12
10
NONAG00
8
4
2
-2
-4
ATR
AQ
Average
Revenue=
24
23
22
21
20
19
18
17
16
15
14
13
12
11
10
N|N
TR
0
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