Figure 8-8 Figure 8-8 reflects the cost and revenue structure for a monopoly that has been in business for a very long time.
-Refer to Figure 8-8.Use this figure to answer the following questions.
a. Identify the curves labelled A and B.Identify the curve that contains both point Y and point Z.Identify the curve that contains both point V and point W.
b.What is the profit-maximising quantity and what price will the monopolist charge?
c.What area represents total revenue at the profit-maximising output level?
d.What area represents total cost at the profit-maximising output level?
e.What area represents profit?
f.What is the profit per unit (average profit)at the profit-maximising output level?
g.If this industry were organised as a perfectly competitive industry,what would be the profit-maximising price and quantity?
h.What area represents the deadweight loss as a result of a monopoly?

Question

Figure 8-8  Figure 8-8 reflects the cost and revenue structure for a monopoly that has been in business for a very long time.
-Refer to Figure 8-8.Use this figure to answer the following questions.
a. Identify the curves labelled A and B.Identify the curve that contains both point Y and point Z.Identify the curve that contains both point V and point W.
b.What is the profit-maximising quantity and what price will the monopolist charge?
c.What area represents total revenue at the profit-maximising output level?
d.What area represents total cost at the profit-maximising output level?
e.What area represents profit?
f.What is the profit per unit (average profit)at the profit-maximising output level?
g.If this industry were organised as a perfectly competitive industry,what would be the profit-maximising price and quantity?
h.What area represents the deadweight loss as a result of a monopoly?

Quizplus · Accepted Answer

The Answer of Figure 8-8  Figure 8-8 reflects the cost and revenue structure for a monopoly that has been in business for a very long time.
-Refer to Figure 8-8.Use this figure to answer the following questions.
a. Identify the curves labelled A and B.Identify the curve that contains both point Y and point Z.Identify the curve that contains both point V and point W.
b.What is the profit-maximising quantity and what price will the monopolist charge?
c.What area represents total revenue at the profit-maximising output level?
d.What area represents total cost at the profit-maximising output level?
e.What area represents profit?
f.What is the profit per unit (average profit)at the profit-maximising output level?
g.If this industry were organised as a perfectly competitive industry,what would be the profit-maximising price and quantity?
h.What area represents the deadweight loss as a result of a monopoly?

Figure 8-8 Figure 8-8 Reflects the Cost and Revenue