Question

In a Monopoly market, a firm is a price maker since there are no close substitutes to the product. You are asked to find the company's Proft-Maximization point. Fixed Costs remains at $1,000.00. Calculate the revenue, profit (any), and costs on the graph,

Answer 1

ATC= TC/ Q
Avc= vc/q
Afc= Fc/ q
Mc= Change TC/ change q
Tc= vc+ fc
Vc= tc/ fc
Mr= change tr/ change q
P≠ mr