$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 Oc. $500 O d. $2,500
$30.00 $25.00 $20.00 $15.00 LRATC = LRMC $10.00 $5.00 Demand = P MR $0.00 50 100 150 200 250 300 Output (Q) The diagram above shows demand and long-run cost curves for a firm that has market power and can set its own price. If the firm must charge the same price to each buyer (it cannot price discriminate), how much total profit will the firm make at its profit maximizing output level? Select one: O a. $1,000 O b. $2,000 Oc. $500 O d. $2,500
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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