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11 Aug 2019
A monopoly has a constant marginal cost of production of $1 per unit and a fixed cost of $10. Draw the firm's MC, AVC, and AC curves. Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indiate the profit as an area on your diagram. Show the deadweight loss.
A monopoly has a constant marginal cost of production of $1 per unit and a fixed cost of $10. Draw the firm's MC, AVC, and AC curves. Add a downward sloping demand curve, and show the profit maximizing quantity and price. Indiate the profit as an area on your diagram. Show the deadweight loss.
Lelia LubowitzLv2
11 Aug 2019
