suppose that average total cost is $36 when q=24. what is the profit-maximizing price and resulting profit?
1 answer:
The profit-maximizing price and resulting profits are $36 and $0 respectively.
<h3>What is profit-maximizing price?</h3>The profit-maximizing price for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost.
Therefore, suppose the average total cost is $36 when q = 24, the profit maximizing price is as follows:
when Q = 24 at average cost = $36,
Then,
profit-maximizing price = p = $36
Hence, the resulting profit is as follows;
resulting profit = 36 - 36 = $0
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