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Calculating optimal output level

Use the attached graph to answer the following questions

a) what is the monopolist's profit-maximizing output?
b)At the profit-maximizing output rate, what are the monopolist's average total cost and average revenue?
c) At the profit-maximizing output rate, what are the monopolist's total cost and total revenue?
d) What is the maximum profit?

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a) What is the monopolist's profit-maximizing output?

A monopolist sets its output level such that MR=MC to maximize profits. Refer to the graph and check for the point where MR and MC curves intersect each other. We find that MR and MC curves intersect each other ...

Solution Summary

Solution describes the steps to calculate optimal output level, ATC, AR, total cost, total revenue and associated profit.

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