A. draw a graph showing the marginal cost, average total cost, demand, marginal revenue, and average...

A. draw a graph showing the marginal cost, average total cost, demand, marginal revenue, and average revenue for a perfectly competitive firm. Indicate the level of profit where profit is maximized, shade in the area of maximum profit, give the amount of maximum profit, and explain how this number is calculated.

B.Graph the short-run supply curve for a perfectly competitive firm and explain where this short-run supply curve lies. Indicate the following curves on your graph: marginal cost curve, marginal revenue curve, average-total-cost curve, average-variable-cost curve, short-run supply curve.

Expert Solution

Rahul Sunny answered 2 years ago

In using the graph for a monopolist, with demand, marginal revenue, marginal cost, and average total...

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Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the...

Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits and Does price discrimination lead to a more efficient or less efficient outcome?...

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OUTPUT AVERAGE FIXED COST AVERAGE VARIABLE COST AVERAGE TOTAL COST 0 1 $180.00 $135.00 $315.00 2 $90.00 $127.50 $217.50 3 $60.00 $120.00 $180.00 4 $45.00 $112.50 $157.50 5 $36.00 $111.00 $147.00 6 $30.00 $112.50 $142.50 7 $25.71 $115.70 $141.41 8 $22.50 $121.90 $144.40 9 $20.00 $130.00 $150.00 10 $18.00 $139.50 $157.50 OUTPUT MARGINAL COST PRICE TOTAL REVENUE TOTAL REVENUE 0 $345.00 1 $300.00 2 $249.00 3 $213.00 4 $189.00 5 $165.00 6 $144.00 7 $126.00 8 $111.00 9 $99.00 10...

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