Question

# A​ monopolist's maximized rate of economic profits is ​\$200 per week. Its weekly output is 200...

A​ monopolist's maximized rate of economic profits is ​\$200 per week. Its weekly output is 200 ​units, and at this output​ rate, the​ firm's marginal cost is \$39 per unit. The price at which it sells each unit is ​\$51 per unit.

At these profit and output​ rates, the​ firm's average total cost is \$___(Enter your response as a whole​ number.)

At these profit and output​ rates, the​ firm's marginal revenue is \$___(Enter your response as a whole​ number.)

Economic Profit = Total Revenue - Total Cost

Given : economic Profit = 200

Total Revenue = Price* Quantity = 51*200 = \$10,200

=> 200 = 10,200 - Total Cost

=> Total Cost = \$10,000

Average Total Cost = Total Cost/Quantity = 10,000/200 = \$50

Hence, Firm's Average Total Cost = \$50

(ii)

In order to maximize profit a monopolist produces that quantity at which Marginal revenue = Marginal Cost.

Here Marginal Cost = \$39

Hence Marginal revenue = Marginal Cost = \$39

Hence, At these profit and output​ rates, the​ firm's marginal revenue is \$39

Hence Marginal revenue = \$39

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