Question #2: Using the following graph to answer thefollowing questions:ATCAVCQ0 4 0, D 0 D0 0 20, 00 300 01Notes: MC is marginal cost, MR is marginal revenue, ATC is averagetotal cost, AVC is average variable cost and D is the demand curve.By looking of this graph, what can you say about the marketpower of this firm? Is it a perfect competitionExplainb. To maximize the profit, how many units should the firm produce?At what price?C. Based on your answer, what is the total revenue? Total costs?Total profit? Total fixed cost?d. Will you operate this firm in the short run? Long run? Brieflyexplainа.or a monopoly?

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Answered: Question #2: Using the following graph…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQP

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Henry Potter owns the only well in town that produces clean drinking water. He faces the following demand, marginal revenue, and marginal cost curves: Demand: P=60−QP=60−Q Marginal Revenue: MR=60−2QMR=60−2Q Marginal Cost: MC=QMC=Q On the following graph, use the blue line (circle symbol) to graph Mr. Potter's demand curve. Then, use the black line (cross symbol) to graph his marginal revenue (MR) curve. Next, use the orange line (square symbol) to graph his marginal cost (MC) curve. Finally, use the grey point (star symbol) to indicate the profit-maximizing price and quantity. : The profit-maximizing quantity is___units, and the profit-maximizing price is___. Mayor George Bailey, concerned about water consumers, is considering a price ceiling that is 10% below the monopoly price. At this new price, the quantity demanded would be___units. At this quantity, the marginal cost would be___the price. Therefore, the profit-maximizing Mr. Potter___produce…
3.1. Fill out the table below. Unit Marginal Marginal Quantity (Q) Price (P) Total Revenue (TR) Fixed Cost (FC) Variable Cost (VC) Total Cost (TC) Profit Cost Revenue 14 $10 140 $3 40 $43 - 15 $10 150 $3 48 $51 10 16 $10 160 $3 57 $60 10 17 $10 170 $3 67 $70 10 18 $10 180 $3 78 $81 10 3.2. Is the table above pertaining to a perfectly competitive firm or monopoly? How can you tell?
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a) What are the basic differences between governmental monopoly and market monopoly? Briefly discuss the short-run equilibrium of a firm under a perfectly competitive market when P < AVC < ATC.
Please have a look at graph in the photo to answer the following questions Notes: MC is marginal cost, MR is marginal revenue, ATC is average total cost, AVC is average variable cost and D is the demand curve.a. By looking of this graph, what can you say about the market power of this firm? Is it a perfect competition or a monopoly? Explain. b. To maximize the profit, how many units should the firm produce? At what price?c. Based on your answer, what is the total revenue? Total costs? Total profit? Total fixed cost?d. Will you operate this firm in the short run? Long run? Briefly explain.
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Microeconomics Q193515 Deadline passed If the price (P) of maple syrup is $4.00 per can, average cost (AC) is $4.50 per can and average variable cost (AVC) is $3.00 per can, then to maximize profit or minimize loss the firm should: Answer approved2$1 Will be moved to archive within about 9 hours. Microeconomics Q194159 4 hours 26 min 1. Briefly discuss two major differences between the theory of perfect competition and the theory of monopoly. 2. What reasons make the demand curve of a perfectly competitive firm completely horizontal? Only state. 3. Represent the information below in an appropriately labelled diagram with the relevant curves, and decide whether the firm should continue production or shut down in the short run, using calculations. A perfectly competitive firm produces 100 mugs to maximize its profit. The average total cost (ATC) is 13 taka per mug and the average fixed cost (AFC) is 4 taka per mug when the firm produces 100 mugs. The…
28) The following table shows costs and revenue schedules for a firm. QuantityAC (£)MC (£) AR (£) MR (£) 100 3.20 3.00 3.00 3.00 200 2.80 2.80 3.00 3.00 300 2.84 3.00 3.00 3.00 400 3.00 3.60 3.00 3.00 500 4.00 6.00 3.00 3.00 600 6.00 9.00 3.00 3.00 At what output will the firm maximise profit? A) 400 B) 300 C) 600 D) 200

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