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    Finding optimal output level

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    Please refer attached file for graph.

    Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.

    a.At what output rate and price does the monopolist operate?
    b.In equilibrium, approximately what is the firm's total cost and total revenue?
    c.What is the firm's economic profit or loss in equilibrium?

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    https://brainmass.com/economics/general-equilibrium/finding-optimal-output-level-342999

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    Solution Preview

    Please refer attached file for graph.

    Answer the following questions on the basis of the monopolist's situation illustrated in the following graph.

    a.At what output rate and price does the monopolist operate?

    A monopolist sets its output level such that Marginal cost is equal to marginal revenue to maximize its profits ...

    Solution Summary

    The solution depicts the methodology to find out optimal output, price, total cost at optimal output level, total revenue at optimal output level and corresponding profits/loss at this level in the case of monopoly.

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