A monopolist faces the following demand curve and cost function
P= 50-0.5Q TC=2Q+1000
Find the follwing equations
Marginal cost:
Marginal Revenue:
Average total cost:
Graph the following on the same graph
A monopolist faces the following demand curve and cost function
P= 50-0.5Q TC=2Q+1000
Find the follwing equations
Marginal cost:
Marginal Revenue:
Average total cost:
Graph the following on the same graph
Marginal cost - Wikipedia, the free encyclopedia
Therefore, MC = DTC/DQ = 2
Marginal Revenue works in a similar fashion, shown here:
Marginal revenue - Wikipedia, the free encyclopedia
Does that get you started?
$\displaystyle Q$: demand, $\displaystyle P$: price, $\displaystyle TC$: total costs
Marginal cost $\displaystyle MC$ is defined as:
$\displaystyle MC=\frac{d}{dQ}TC$
Revenue is demand times price:Marginal Revenue:
$\displaystyle R=Q \times P$
$\displaystyle MR=\frac{d}{dQ}R$
Average cost is:Average total cost:
$\displaystyle AC=TC/Q$
RonL
Graph the following on the same graph