Question

A​ monopolist's maximized rate of economic profits is ​$2 comma 700 per week. Its weekly output is 900 ​units, and at this output​ rate, the​ firm's marginal cost is ​$39 per unit. The price at which it sells each unit is ​$49 per unit. at this profit output rates, what are the firm's average total cost and marginal revenue?

Answer 1

Answer:

Average total cost= $46

Marginal revenue= $33

Explanation:

In this instance the monopolist's total cost is the revenue from sale of one unit less the economic profits per unit

Economic profit per unit= 2,700/900

Economic profit per unit= $3

Average total cost= (Price per unit) - (Economic profit per unit)

Average total cost= 49 - 3= $46

For this instance marginal revenue is equal to marginal cost.

Marginal revenue= Marginal cost= $39