The intersection of the marginalrevenue and marginal cost curves occurs where output is 20 units at an output of 20 units, themonopoly price is $15 per unit, the marginal cost is $8 per unit, and the average variable cost is $6 perunit, and average fixed cost is $4 per unit a $180b $140c $120d $10016.
Monopolist equilibrium with zero marginal cost: under certain exceptional cases, the cost of additional units of output, ie, marginal cost (mc) may be equal to zero with constant value 'zero' of marginal cost, the value of average cost is also constant and is equal to zero.
Since in monopoly, the marginal cost is always less than the price, the greater the difference between the two, the larger is the monopoly power second, the difference between monopoly super-normal profits and competitive super-normal profits is also considered as the measure of monopoly power.
D the single-price monopolist’s profit per unit is the difference between price and the average total cost since there is no fixed cost and the marginal cost is constant (each unit costs the same to produce), the marginal cost is the same as the average total cost that is, profit per unit is the distance be. Unique creations hold a monopoly position in the production and sale of magnometers the cost function facing unique is estimated to be marginal cost of unique is $ 2000 as a marginal cost is the cost that is incurred due to the increase of the cost divided by increase in the quantity.
Monopoly questions and answers most of the countries have been working on the subject of monopolies control 3-how we can regulate the monopoly pricing at marginal cost economists have for many decades argued the benefits of setting public utility tariffs on the basis of marginal cost the chi square test health and social care essay. Assume that marginal cost is cm=12 firm 1 wants to know its maximizing quantity and price firm 1 begins the process by following the profit maximization rule of equating marginal revenue to marginal costs firm 1’s total revenue function is rt = q1 p= q1(m – q2 – q1) = m q1- q1q2 – q12 the marginal revenue function is.
Monopoly: marginal cost and long run equilibrium essay sample ajax cleaning products is a medium sized operating in an industry dominated by one large firm tile king ajax produces a multi-headed tunnel wall scrubber that is similar to a model produced by title king to avoid the possibility of price war the price charged by title king is $ 20,000. Marginal productivity theory: a theory used to analyze the profit-maximizing quantity of inputs (that is, the services of factor of productions) purchased by a firm in the production of output marginal-productivity theory indicates that the demand for a factor of production is based on the marginal product of the factor in particular, a firm is generally willing to pay a higher price for an input that is more productive and contributes more to output.
Since there is no fixed cost and the marginal cost is constant (each unit costs the same to produce), the marginal cost is the same as the average total cost that is, profit per unit is the distance be.