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Monopoloy equilibrium

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Demand: Q=90-P/2 so that Marginal Revenue is MR=180-4Q.

Total cost: TC=20Q+1000 so that Marginal Cost is MC=20.

Q P=D MR MC ATC P*
45
44
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35
Draw the monopoly equilibrium: plot P (which gives the demand curve), MR, ATC, and MC plus the equilibrium monopoly price on the y-axis and Q on the x-axis. Please add in necessary lines to illustrate the monopoly equilibrium output, price and profit.

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Solution Summary

Monopoloy equilibrium and marginal revenues are examined.

Solution Preview

Q P MR ATC MC
45 90 0 42.22222222 20 P = 180 - 2Q
44 92 4 42.72727273 20 MR = ...

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