In: Economics
Q) Monopoly
Demand: P = 32 - Q
Marginal revenue: 32-2Q
Average total cost = ATC = 2/Q + Q
Marginal Cost: MC = 2Q
Draw a graph showing MC, MR, demand, and ATC. Illustrate this firm's revenue, cost, and profit in your graph. Then explain why the marginal revenue lies below the demand curve in a monopoly.