ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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I only need answers on the highlighted ones please :)

**Suppose the following kinked demand curve for a particular oligopoly firm.**

The graph presented shows several curves on a price-output relationship:

- **MC (Marginal Cost)**: An upward-sloping curve intersecting with the MR curve.
- **AR = D (Average Revenue = Demand)**: A kinked curve with a more inelastic section and a bend at the current price and output levels.
- **MR (Marginal Revenue)**: A curve with a vertical segment at the kink point.
- **ATC (Average Total Cost)**: A U-shaped curve.

**Key Points on the Graph:**

- The vertical axis is labeled "Dollars per Unit," and the horizontal axis is labeled "Output."
- The intersection of the MR curve's vertical segment with the MC curve determines the profit-maximizing output.
- The price level along the AR curve at the given output level.

**Questions:**

a. **What is the current price?**

b. **What is the current output?**

c. **What is this firm's per unit profit?**

d. **What is this firm's total profit?**
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Transcribed Image Text:**Suppose the following kinked demand curve for a particular oligopoly firm.** The graph presented shows several curves on a price-output relationship: - **MC (Marginal Cost)**: An upward-sloping curve intersecting with the MR curve. - **AR = D (Average Revenue = Demand)**: A kinked curve with a more inelastic section and a bend at the current price and output levels. - **MR (Marginal Revenue)**: A curve with a vertical segment at the kink point. - **ATC (Average Total Cost)**: A U-shaped curve. **Key Points on the Graph:** - The vertical axis is labeled "Dollars per Unit," and the horizontal axis is labeled "Output." - The intersection of the MR curve's vertical segment with the MC curve determines the profit-maximizing output. - The price level along the AR curve at the given output level. **Questions:** a. **What is the current price?** b. **What is the current output?** c. **What is this firm's per unit profit?** d. **What is this firm's total profit?**
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