The upper graph is for a perfectly competitive firm. The lower graph is for a monoploist. Use the graphs to answer the following questions:
1. What is the firm's Total Revenue?
2. What is the Total Cost?
3. What is the firm's Total Profits?
4. If a monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its output.
A perfect competitor maximizes its profit when MR=MC. See the attached file.
1. Its ...
The expert determines how to use a graph to determine the profits of a perfectly competitive firm and a monopolist.