Mc Qu 74 The Market Demand For A Monopoly The Market Demand For A Monopoly Firm Is Estimated To Be Qd 100 000 500 1 (39.31 KiB) Viewed 16 times
MC Qu. 74 The market demand for a monopoly... The market demand for a monopoly firm is estimated to be: Qd=100,000 - 500P + 2M + 5,000PR where Qdis quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2021. The average variable cost function is estimated to be AVC=520 -0.03Q+0.000001² Total fixed cost in 2021 is expected to be $4 million. The manager should because
Multiple Choice O shut down; P = $520 < TVC = $320 O shut down; P= $480 < AVC = $500 Ooperate; P= $560 > AVC= $320 operate; P= 480 > AVC = $300
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!