Economics Homework
Autor: Tim • January 16, 2018 • 673 Words (3 Pages) • 504 Views
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F. Graph. If the monopolist is the able to perfectly price discriminate his total revenue will be represented by the area oaef, his total cost will be represented by the area oabc and his profit will be the area cbef.
[pic 2]
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Price
Suits sold (per hour)
TR
MR
TC
AC
MC
68
1
68
68
70
70
70
66
2
132
64
80
40
10
64
3
192
60
85
28
5
62
4
248
56
90
23
5
60
5
300
52
100
20
10
58
6
348
48
115
19
15
56
7
392
44
136
19
21
54
8
432
40
164
21
28
52
9
468
36
200
22
36
50
10
500
32
245
25
45
b. 9 suits, $52 per hour, and $268 in profit
c. GRAPH
d. The number of firms in the long run will increase as competitors enter the market.
e. Right now there is a profit, in the long run there would not be any economic profit. The demand curve will continue shifting to the left until it is just tangent to the average total cost curve at the profit maximizing level of output. At this point, the firm's economic profits are zero, and there is no longer any incentive for new firms to enter the market.
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Industry
A
Industry
B
Industry
C
Firm
Sales
Firm
Sales
Firm
Sales
1
260
1
170
1
43
2
250
2
55
2
42
3
220
3
52
3
41
4
190
4
42
4
40
5
30
5
40
5
39
6
30
6
39
6
39
7
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