Answered: the TR is inverted U shaped and the…

the TR is inverted U shaped and the slope of MR is twice the slope of TR the TR is inverted U shaped and the slope of MR is twice the slope of AR

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter11: Monopolistic Competition, Oligopoly, And Game Theory

Section11.1: The Theory Of Monopolistic Competition

Problem 1ST

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For a monopolist
the TR is inverted U shaped and the
slope of MR is twice the slope of TR
the TR is inverted U shaped and the
slope of MR is twice the slope of AR

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b bMy Question X WMonop HW X Σ Σ G + f G Office Editing for Docs, Sheets & Slides chrome-extension://bpmcpldpdmajfigpchkicefoigmkfalc/... The quantity has been found for you by finding where MC-MR. The monopolist sets price by charging as high as demand will bear at that quantity. So once the quantity has been found, go upon the dotted is the price. Total Revenue is PxQ, Total costs are found by finding the average cost and multiplving by O. ATC AVC 100 100 MR What is the optimal quantity? What is the price? What is Total Revenue? What is Total Cost? What is Total Variable Cost? What is Total Fixed Cost? [Hint: Average fixed cost is the vertical distance between the ATC and AVC curves at the optimal Q.] Is there a profit or a loss? How much? 8 11:02