Draw a graph of the demand and cost conditions facing the, Ask an Expert

Economics

A monopolist is producing a level of output, 80 units, at which price is $12, marginal revenue is $8, average total cost is $14, average variable cost is $5, and marginal cost is #2.

a. Draw a graph of the demand and cost conditions facing the firm.
b. Is the firm making the profit-maximizing decision? Why or why not? If not, what should the manager do?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M960158

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