The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit...

Question

Question

Answer 1

Answer #1

Solution:

1) Total cost = ATC * Output

Total cost = $43 * 2 million = $86 million

2) Economic Profits = (Average Revenue (Price) - Average Cost) * Output

Economic Profits = (50 - 43) * 2 = 14 million

Answer 2

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