A monopolist is able to produce at a constant average total and marginal costs (ATC =...

A monopolist is able to produce at a constant average total and marginal costs (ATC = MC = 5). The firm faces a market demand curve with the following equation P = 53 - Q.

*Determine the equation that gives the firm's marginal revenue curve.

*Determine the firm's profit-maximizing output level and the price that they would charge for their product. Determine the monopolist's profits.

*Determine the output level that would be produced within this firm under perfect competition. (P = MC at profit-maximizing (loss-minimizing) output level in a perfectly competitive firm.) Determine the profit that firms in a perfect competition would earn.

Expert Solution

Ans.

Rahul Sunny answered 2 years ago

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