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# Monopolist Question: Demand curve, marginal cost, revenue

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A monopolist with a straight-line demand curve finds
that it can sell two units at \$12 each or 12 units at \$2
each. Its fixed cost is \$20 and its marginal cost is constant
at \$3 per unit.
a. Draw the MC(marginal cost), ATC (average-total-cost), MR (marginal revenue), and demand curves for this
monopolist.
b. At what output level would the monopolist produce?
c. At what output level would a perfectly competitive
firm produce?

https://brainmass.com/economics/output-and-costs/monopolist-question-demand-curve-marginal-cost-revenue-21191

#### Solution Preview

A monopolist with a straight-line demand curve finds that it can sell two units at \$12 each or 12 units at \$2 each. Its fixed cost is \$20 and its marginal cost is constant
at \$3 per unit.
a. ...

#### Solution Summary

The expert examines monopolist questions on demand curve, marginal cost and revenues.

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