A monopolist with a straight-line demand curve finds;that it can sell two units at $12 each or 12 units at $2;each. Its fixed cost is $20 and its marginal cost is constant;at $3 per unit.;a. Draw the MC(marginal cost), ATC (average-total-cost), MR (marginal revenue), and demand curves for this;monopolist.;b. At what output level would the monopolist produce?;c. At what output level would a perfectly competitive;firm produce?
Paper#21611 | Written in 18-Jul-2015Price : $22