Scenario 15-2

A monopoly firm maximizes its profit by producing 500 units output (so Q = 500).At that level of output, its marginal revenue is $32, its average revenue is $42, and its average total cost is $36.
-Refer to Scenario 15-2.At Q = 500,what is the firm's marginal cost

Question

Scenario 15-2
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A monopoly firm maximizes its profit by producing 500 units output (so Q = 500).At that level of output, its marginal revenue is $32, its average revenue is $42, and its average total cost is $36.
-Refer to Scenario 15-2.At Q = 500,what is the firm's marginal cost

Quizplus · Accepted Answer

In a monopoly, profit maximization occurs where marginal cost (MC) equals marginal revenue (MR). Since the marginal revenue is $32 at Q = 500, the marginal cost must also be $32.

Scenario 15-2 ​​

Scenario 15-2