In Karachi Pharma A has the monopoly over the production and distribution of medicine throughout the city. Pharma A faces the following the demand and cost curve and solve all the parts and also subparts if you think needed or any multi subpart.Quantity/ OutputTotal CostPrice040040104503520550303070025409002050115015601450107018005 Find: FC, VC, MC, AFC, AVC, ATCFind how much output should Pharma A produced and what should be the price charged to maximize profits.Illustrate your answer in part b graphically. Find how much profit the Pharma A is earning (show calculations) and highlight the same in the graph drawn in part c.

Hi! thanks for the question but as per the guidelines, we can answer only 3 sub-parts at one time.…

Answered: In Karachi Pharma A has the monopoly…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 7SQP

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In Karachi Pharma A has the monopoly over the production and distribution of medicine throughout the city. Pharma A faces the following the demand and cost curve and solve all the parts and also subparts if you think needed or any multi subpart.

Quantity/ Output	Total Cost	Price
0	400	40
10	450	35
20	550	30
30	700	25
40	900	20
50	1150	15
60	1450	10
70	1800	5

Find: FC, VC, MC, AFC, AVC, ATC
Find how much output should Pharma A produced and what should be the price charged to maximize profits.
Illustrate your answer in part b graphically.
Find how much profit the Pharma A is earning (show calculations) and highlight the same in the graph drawn in part c.

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