Question
9. A monopolist with a straight-line demand curve finds that it can sell 2 units at $12 each or 12 units at $2 each. Its
9. A monopolist with a straight-line demand curve finds that it can sell 2 units at $12 each or 12 units at $2 each. Its fixed cost is $20 and its marginal cost is constant at $3 per unit. (LO14-2)
a.) Draw the MC, ATC, MR, and demand curves for this monopolist.
b.) At what output level would the monopolist produce?
c.) At what output level would a perfectly competitive firm produce?
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Microeconomics
Authors: Austan Goolsbee, Steven Levitt, Chad Syverson
1st Edition
978-1464146978, 1464146977
