of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it produces this output, the firm's average total cost is $43 per unit. d. How much is total cost? e. What are the firm's economic profits (or economic lasses)?

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.7P
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The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output
of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it
produces this output, the firm's average total cost is $43 per unit.
d. How much is total cost?
e. What are the firm's economic profits for economic losses)?
Transcribed Image Text:The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing to pay for this output is $50 per unit. If it produces this output, the firm's average total cost is $43 per unit. d. How much is total cost? e. What are the firm's economic profits for economic losses)?
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