The following figure shows the demand curve and the marginal revenue (MR)curve of a monopolist supplying petroleum.
a)If the monopolist faces a constant marginal cost of $3,what is the optimal output that it should produce?
b)If the monopolist faces a constant marginal cost of $3,at what price should it sell the optimal output?
c)If the average total cost of the monopolist is $4 per gallon when it produces the optimal output,determine its profit or loss.
Definitions:
Non-verbal Communication
Involves the transmission of messages or signals through a non-linguistic means such as facial expressions, body language, gestures, and tone of voice.
Emotional Involvement
The degree to which an individual is emotionally engaged or invested in an activity, task, or relationship.
Jargon
Specialized language used by a particular profession or group, often difficult for outsiders to understand.
Intellectual Stimulation
The degree to which leaders encourage followers to think critically and independently, fostering innovation and creativity.
Q15: Refer to the table above.Which statement is
Q52: Refer to the scenario above.In equilibrium,_.<br>A) Firm
Q120: All of the following are research studies
Q142: Refer to the scenario above.Tobac Co.is forced
Q164: A musician was guaranteed by the government
Q177: Two friends,Pat and Julie,are going to a
Q194: Refer to the figure above.Under monopoly,social surplus
Q216: Other things remaining the same,which of the
Q225: If the marginal product of capital increases,the
Q250: A monopolistic competitor earns zero economic profits