Question
Based on the monopolistic demand curve below : (a) The firm's profit-maximizing level of output is (1 mark) (b) In order to maximize profit, the
Based on the monopolistic demand curve below : (a) The firm's profit-maximizing level of output is (1 mark) (b) In order to maximize profit, the firm will charge a price of (1 mark) (c) Suppose that average total cost is RM18 when Q=12. What is the profit-maximizing price and resulting profit? (2 marks) (d) If the average total cost is RM15 at the profit-maximizing quantity, then the firm's maximum profit is (1 mark) (e) If the average variable cost is RM12 at the profit-maximizing quantity, and if the firm's fixed costs amount to RM30, then the firm's maximum profit is (1 mark) (f) If the average variable cost is RM13 at the profit-maximizing quantity, and if the firm's profit is RM20 at that quantity, then its fixed costs amount to (2 marks)*
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