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The following table summarizes the weekly sales and cost situation confronting a monopolist: LO 1 0 2 table [ [ Price , table
The following table summarizes the weekly sales and cost situation confronting a monopolist: LO
tablePricetableQuantityDemandedtableTotalRevenuetableMarginalRevenueTotal Cost,tableMarginalCosttableAverageTotal Cost$$
g Complete the table.
h Graph the demand, MR and MC curves on the following graph.
i At what'rate of output are profits maximized?
j What are the values of MR and MC at the profitmaximizing rate of output?
k What price will the firm charge?
I. What are total profits at that output rate?
m If a competitive industry confronted the same demand and costs, how much output would it produce, and what price would it charge in the short run?
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