Question 1 The Figure Below Shows The Marginal Revenue Mr And Demand Curves Faced By A Monopoly Producer Price Cost 1 (160.91 KiB) Viewed 23 times
QUESTION 1 The figure below shows the marginal revenue (MR) and demand curves faced by a monopoly producer. Price/Cost ($) 18 16 14 12 10 8 Demand 6 MR 2 10 15 20 2530 3540 45 SO 55 60 65 70 75 80 85 90 Quantity (units) If the firm faces a constant marginal cost of $6, what is the optimal quantity that it should produce? 40 units 60 units 20 units 30 units
QUESTION 2 The figure below shows the marginal revenue (MR) and demand curves faced by a monopoly producer. Price/Cost ($) 18 16 14 12 10 8 Demand MR 2 5 10 15 20 25 30 35 40 45 so 60 65 70 75 80 85 90 Quantity (units) If the firm faces a constant marginal cost of $2, at what price should it sell its output to maximize profits? $12 $2 $10 $6
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