Draw a Linear Demand Curve,marginal Revenue Curve,marginal Cost Curve,average Total

question 28

Essay

Draw a linear demand curve,marginal revenue curve,marginal cost curve,average total cost curve,and an average variable cost curve for a monopolist earning an economic profit.Shade in the area of the economic profit.

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Definitions:

Purchases

Merchandise for resale. It is a cost.

Departmental Gross Profit

The profit made by individual departments within a company, calculated by subtracting the cost of goods sold from the sales revenue generated by each department.

Revenue

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Profit Center

A segment or part of a business directly responsible for its profits and losses.