help in homework

New User?

Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Suppose that a pure monopolist can sell 15 units of output at $6 per unit and 16 units at $5

Suppose that a pure monopolist can sell 15 units of output at $6 per unit and 16 units at $5

Economics

Suppose that a pure monopolist can sell 15 units of output at $6 per unit and 16 units at $5.70 per unit. For the monopolist to profitably produce and sell the sixteen unit of output, its marginal cost must be anywhere at or below:

1) 5.70

2) 1.20

3) 1.80

4) 6

 

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

Marginal cost= $1.20

Explanation:

Total revenue from selling 15 units= 6* 15 = 90

Total revenue from selling 16 units = 5.70* 16 = 91.2

 

Marginal revenue for the sixteenth unit = 91.2- 90 = 1.20

So,

As we know MR= MC

MC will be 1.20

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.9)

Google (5.0)