pm5a - B ’ A ’ h h h h h h N ’ MR AFC ATC MC AR = D N...

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Additional Problem #5 Answers : Pure Monopoly 1. At what output will the firm operate? 0X (or X) . 2. What is the MR at this output? XC (or 0C) . 3. What is the MC at this output? XC (or 0C) . 4. What is the market price? XA (or 0A) . 5. What is the TR at this output? 0AA X (or A x X) . 6. What is the ATC at this output? XB (or 0B) . 7. What is the TC at this output? 0BBX (or B x X) . 8. What is the AFC at this output? XD (or 0D) . 9. What is TFC at this level of output? 0DD X (or D x X) . 10. What is the AVC at this output? D B (or DB) . 11. What is the TVC at this output? DBB D (or (DB) x X) . 10. What is the profit or loss per unit at this output? B A or BA . 11. What is the total profit or loss at this output? BAA B (or (BA) x X . Q $ X A B C D D C
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Unformatted text preview: B ’ A ’ h h h h h h N ’ MR AFC ATC MC AR = D N 0 100 130 160 1. How many units of output will be offered for sale by this firm? 100 . 2. What is the market price at this output? $2.00 . 3. What is the MR at this output? $1.00 . 4. What is the MC at this output? $1.00 . 5. What will be the TR at this output? $200 . 6. What is the TC at this output? $150 . 7. What is the ATC at this output? $1.50 . 8. What is the TFC at this output? $50 . 9. What is the AFC at this output? $.50 . 10. What is the TVC at this output? $100 . 12. What is the AVC at this output? $1.00 . 13. What is the per unit profit or loss at this output? $.50 . 14. What is the total profit or loss at this output? $50 . Q AR = D = P 1.00 1.40 1.50 2.00 $ ATC MC AVC h h MR h...
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.

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pm5a - B ’ A ’ h h h h h h N ’ MR AFC ATC MC AR = D N...

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