Question

Price and cost (cents per newspaper) 1207 MC 100- 80- 6044 404 600 100 200 300 400 500 Quantity (newspapers per day)

Village is an isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could. The Village Examiner is the only source of news.

The graph shows the marginal cost of printing the newspaper and the market demand for it. The firm is a​ profit-maximizing, single-price monopoly.

1. Draw the marginal revenue curve and label it MR.

2. The number of copies of the Tiny Intelligencer printed each day is _____?

3. The price of a copy of the Tiny Intelligencer is ____ cent?

4. Draw a point at the​ profit-maximizing output and price.

  

5.This​ single-price monopoly​ ______ print the efficient quantity because the marginal​ _____ the marginal cost of the last copy printed.

A.does​ not; benefit from the last copy printed exceeds

B.does​ not; benefit from the last copy printed is less than

C.​does; revenue from the last copy printed equals

D.does; benefit from the last copy printed exceeds

Answer 1