The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit- maximizing monopolist. Price $40 30 20 10 0 $2,000. $500. $4,000. 100 • $1,000. 200 Marginal Revenue 300 Refer to Figure 15-7. If fixed costs of production = $1,000, monopoly profit without price discrimination equals 400 Marginal Cost Demand Quantity

The figure below depicts the demand, marginal revenue, and marginal cost curves of a profit- maximizing monopolist. Price $40 30 20 10 0 $2,000. $500. $4,000. 100 • $1,000. 200 Marginal Revenue 300 Refer to Figure 15-7. If fixed costs of production = $1,000, monopoly profit without price discrimination equals 400 Marginal Cost Demand Quantity

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...

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