Question
Please draw this on a graph: Demand curve: QD = 300 - 0.25P Marginal cost curve: MC = 200 + 2Q Marginal revenue curve: MR
Please draw this on a graph:
Demand curve: QD = 300 - 0.25P Marginal cost curve: MC = 200 + 2Q Marginal revenue curve: MR = 300 - 0.5Q Average total cost curve: ATC = 200 + 2Q + 100/Q Vertical axis: Price and cost (P, MC, MR, ATC) Horizontal axis: Quantity (Q) Plot the demand curve as a downward-sloping line with intercepts at P = 300 and Q = 1200. Plot the MC curve as an upward-sloping line with intercepts at P = 200 and Q = -100. Plot the MR curve as a downward-sloping line with intercepts at P = 300 and Q = 600. Plot the ATC curve as a U-shaped curve that reaches its minimum at Q = 50 and P = 250. Mark the monopoly equilibrium point E where the MR and MC curves intersect at Q = 50 and P = 287.5. Draw a vertical line from E to the demand curve and label it Pm. Draw a horizontal line from E to the ATC curve and label it Om. Shade the area between the demand curve and the ATC curve above Om, which represents the monopoly profit.
The numerical intercepts for the demand and marginal cost curves are:
- Demand curve: P-intercept = 300, Q-intercept = 1200
- Marginal cost curve: P-intercept = 200, Q-intercept = -100
The exact monopoly equilibrium price and quantity are:
- PM = 287.5
- Om = 50
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