Suppose you own a firm that produces widgets and is a monopoly.The market demand is given by the equation P = 50 - 0.08Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week.The marginal costs for the firm are 0.08Q
A.Draw the firm's demand, marginal revenue, and marginal cost curves.
B.Find the profit-maximizing level of output for this firm.Will the firm earn positive or negative profits?
MR = 50 - 0.66Q

Question

Suppose you own a firm that produces widgets and is a monopoly.The market demand is given by the equation P = 50 - 0.08Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week.The marginal costs for the firm are 0.08Q
A.Draw the firm's demand, marginal revenue, and marginal cost curves.  
B.Find the profit-maximizing level of output for this firm.Will the firm earn positive or negative profits?
MR = 50 - 0.66Q

Quizplus · Accepted Answer

The Answer of Suppose you own a firm that produces widgets and is a monopoly.The market demand is given by the equation P = 50 - 0.08Q, where P is the price of gadgets and Q is the quantity of gadgets sold per week.The marginal costs for the firm are 0.08Q
A.Draw the firm's demand, marginal revenue, and marginal cost curves.  
B.Find the profit-maximizing level of output for this firm.Will the firm earn positive or negative profits?
MR = 50 - 0.66Q

Suppose You Own a Firm That Produces Widgets and Is