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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
    43
    42
    41
    40
    39
    38
    37
    36
    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.

    © BrainMass Inc. brainmass.com October 10, 2019, 1:57 am ad1c9bdddf
    https://brainmass.com/economics/general-equilibrium/monopoloy-equilibrium-marginal-revenues-356402

    Solution Preview

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

    Solution Summary

    Monopoloy equilibrium and marginal revenues are examined.

    $2.19