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Determining Optimal Output level

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Please refer attached file for graph.

Assuming that the firm in the attachment is a profit maximizer operating in the short run, determine its optimal price

Determine the firm's profit per unit in the attachment.

What is the ATC in dollars?

If the attached monopolist were to behave like a perfectly competitive firm operating in the long run what's its price.

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Solution Summary

Solution describes the steps to find out price, output, profit per unit and ATC at optimal level of output for a monopolistically competitive firm. It also determines the price for a competitive firm in the long run.

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Solution:

Assuming that the firm in the attachment is a profit maximizing operating in the short run, determine its optimal price
Determine the firm's profit per unit in the ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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