Refer to Figure 15-8. Use the figure above to answer the ...

[tuffie]

Refer to Figure 15-8. Use the figure above to answer the following questions.
 
  a. Identify the curves labeled A and B. Identify the curve which contains both point Y and point Z. Identify the curve which contains both point V and point W.
  b. What is the profit-maximizing quantity and what price will the monopolist charge?
  c. What area represents total revenue at the profit-maximizing output level?
  d. What area represents total cost at the profit-maximizing output level?
  e. What area represents profit?
  f. What is the profit per unit (average profit) at the profit-maximizing output level?
  g. If this industry was organized as a perfectly competitive industry, what would be the profit-maximizing price and quantity?
  h. What area represents the deadweight loss as a result of a monopoly?

Question 2

The best measure of a country's standard of living is
 
  A) total nominal GDP. B) GDP per unit of capital.
  C) GDP per capita. D) GDP per labor hour.

[TDubDCFL]

Answer to Question 1

a. A = Demand curve; B = Marginal revenue curve; The curve which contains both points Y and Z = Marginal cost curve; The curve which contains both points V and W = Average total cost curve.
b. Quantity = Q2 units; Price = P3
c. Area 0P3XQ2
d. Area 0P0VQ2
e. Area P0P3XV
f. P3 - P0
g. Quantity = Q4 and Price = P2
h. The triangle XYZ

Answer to Question 2

C

[tuffie]

Correct answers!

[TDubDCFL]

Great! Please up vote