Question

Please answer the following 3 questions:

Price МС ATC Tmi 5 ---- Quantity/Time MR According to the above figure, the profit-maximizing output for this monopolist is f

Which of the following would best describe the demand curve faced by a monopoly firm? o vertical line at the output level O s

MC Price - -- Output Month MR Refer to the above figure. Suppose this industry was perfectly competitive and then merged into

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Answer #1

1.A monopoly is in equilibrium when MR=MC.In this case MR=MC at R.

Answer-R

2.A perfectly competitive firm produces the level of output at which P=MC.Level of competitive output=Q2.Level of monopolistic output=Q1.

Answer-Last option

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