Question

Identify the profit maximizing level of output (q*) and price (p*) for this firm. ​

Answer 1

Answer:The pattern of costs for the monopoly can be analyzed within the same ... low quantity like Ql or a relatively high quantity like Qh at the market price P. ... A perfectly competitive firm will also find its profit-maximizing level of output where MR = MC. ... Total cost will be Q1 multiplied by the average cost of producing

Step-by-step explanation:

Answer 2

Answer:

To obtain the profit maximizing output quantity, we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity, we can either compute equations or plot the data directly on a graph.

Step-by-step explanation:

The monopolist will select the profit-maximizing level of output where MR = MC, and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.