ATC$70$60$50DIMR$40$30$20$100 60 100 160 200 260 300 360 400OutputIf the price were $60, this firm wouldthe long run.in the short run andinO operate; go out of businessO shut down; go out of businessO shut down; stay in businessO operate; stay in business

We know that under monopoly, the profit maximizing condition is when MR=MC

$70 DIMR $40 $30 $20 $10 O60 100 160 200 260 300 360 400 Output If the price were $60, this firm would in the short run and in the long run. O operate: go out of business O shut down; go out of business O shut down; stay in business O operate: stay in business

$70 DIMR $40 $30 $20 $10 O60 100 160 200 260 300 360 400 Output If the price were $60, this firm would in the short run and in the long run. O operate: go out of business O shut down; go out of business O shut down; stay in business O operate: stay in business

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 5PA

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Question

ATC
$70
$60
$50
DIMR
$40
$30
$20
$10
0 60 100 160 200 260 300 360 400
Output
If the price were $60, this firm would
the long run.
in the short run and
in
O operate; go out of business
O shut down; go out of business
O shut down; stay in business
O operate; stay in business

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