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MC ATC Dollars Hii IN TINI IMR MNQR Quantity A) What is magic pricing rule and where is this point on graph? B) How many unit
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Answer #1

(A) MR = MC is a magic pricing rule.

It implies monopoly firm maximize profit at MR=MC.

On the graph, point H represent it.

(B) Firm will produce M units.

(C) They sell M units at a price of A

(D) Total revenue = AFM0

(E) Total Cost = BGM0

(F) Profit = AFGB

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