Here is an example of some of the problems I am having difficulty with. (This is not an actual homework problem, but understanding the concept of this example would help me to do the rest of them correctly).
A monopolist with a straight-line demand curve finds that it can sell 2 units at $12.00 each or 12 units at $2.00 each. Its fixed cost is $20.00 and its marginal cost is constant at $3.00 per unit. Please draw the MC, ATC, MR and demand curve and explain at what output level would this monopolist produce? What output level would a perfectly competitive firm produce?© BrainMass Inc. brainmass.com October 9, 2019, 4:40 pm ad1c9bdddf
The solution provides explanations and interpretations of the question given as well as drawing a demand curve.