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10 February, 08:55

Use the cost and revenue data to answer the questions. Quantity Price Total Revenue Total Cost 15 90 1350 900 30 80 2400 1500 45 70 3150 2250 60 60 3600 3150 75 50 3750 4200 90 40 3600 5400 What is marginal revenue when quantity is 30? 30? $ What is marginal cost when quantity is 60? 60? $ If this firm is a monopoly, at what quantity will profit be maximized? quantity: If this is a perfectly competitive market, which quantity will be produced? quantity: Comparing monopoly to perfect competition, which statement is true? The perfectly competitive market's ouput is lower. The consumer surplus is smaller with a monopoly. The monopoly's price is higher.

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  1. 10 February, 11:03
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    What is marginal revenue when quantity is 30? 30?

    $70

    = ($2,400 - $1,350) / (30 - 15) = $900 / 15 = $70

    What is marginal cost when quantity is 60? 60?

    $60

    = ($3,150 - $2,250) / (60 - 45) = $900 / 15 = $60

    If this firm is a monopoly, at what quantity will profit be maximized?

    quantity: 45 units

    a monopoly maximizes its accounting profit when marginal revenue = marginal cost, in this case they both equal $50 per unit when total output is 45 units

    If this is a perfectly competitive market, which quantity will be produced?

    quantity: 45 units

    a perfectly competitive firm maximizes its accounting profit when marginal revenue = marginal cost, in this case they both equal $50 per unit when total output is 45 units

    Comparing monopoly to perfect competition, which statement is true?

    The consumer surplus is smaller with a monopoly. The monopoly's price is higher.

    In a monopoly, output is smaller than the perfectly competitive output. The price charged by a monopolist is also higher. This also results in lower consumer surplus with a monopoly.

    Explanation:

    Quantity Price Total Revenue Total Cost

    15 90 1350 900

    30 80 2400 1500

    45 70 3150 2250

    60 60 3600 3150

    75 50 3750 4200

    90 40 3600 5400
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