Mel’s Diner is a popular café that specializes in home-cooked meals, friendly service, and a menu that contains vegan and vegeta
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Answer:
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Explanation:
Marginal revenue is the revenue earned by selling an additional unit of output. Marginal Revenue for fifteenth unit of output is calculated as below.
Marginal Revenue= =
Marginal Cost is the additional cost incurred on producing additional unit of output. Marginal Cost for fifteenth unit is calculated as below.
Marginal Cost=
The marginal revenue when the quantity is 25 is
The marginal Cost when the quantity is 15 is
The marginal profit of a monopoly is 0 when the marginal profit is equal to the marginal cost. The monopoly produces at an output where the marginal profit is equal to zero.
Thus, the output produced by the monopoly is
The corresponding price set is at $70.
120 units
A perfectly competitive market produces an output where the marginal cost is equal to
the average revenue. Thus a competitive firm produces
The corresponding price is set at $50.
130 units)
The monopoly price $70 is higher than the competitive firm's price $50.
Hence, the correct option is