I need answer only d and e Note: Answer should be in typed words... I have posted this question again because someone here before gave the wrong and unreadable answer. So, I request that person to don't give the answer now. I am putting his answer here which is

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need answer only d and e

Note: Answer should be in typed words... I have posted this question again because someone here before gave the wrong and unreadable answer. So, I request that person to don't give the answer now. I am putting his answer here which is wrong.

2. Consider the graph below, which indicates the demand and cost structures of a
monopolist firm and answer the questions that follow.
Figure 2
MC
АТС
P3
P4
D
Q3 Q Q2 Quantity
MR
a) What quantity will this monopolist produce at equilibrium?
b) At what price is this monopolist selling the product?
c) What is the average total cost of selling the product?
d) What is the profit or loss per unit?
e) In your opinion, should this monopolist shut down? Motivate your answer.
Dollars
Transcribed Image Text:2. Consider the graph below, which indicates the demand and cost structures of a monopolist firm and answer the questions that follow. Figure 2 MC АТС P3 P4 D Q3 Q Q2 Quantity MR a) What quantity will this monopolist produce at equilibrium? b) At what price is this monopolist selling the product? c) What is the average total cost of selling the product? d) What is the profit or loss per unit? e) In your opinion, should this monopolist shut down? Motivate your answer. Dollars
quilibruim is where
at thin poing) .
a she quantity which monopoly praduce at
MR MC. * are ma
wimized
The quantity produerd at thês poñnt o Qs
O Allo cating the d3 ou the demand curuo me niell get the
price
the price io P3 at Bs lenel
3
price level LP3) but
eutfut
he A TC
at Q3 is loemer than the
abone the tenel t).
at Q3 lenel 2 putjut the prie (P3) n greater
there are
There are
profita
thata ATC. hence,
at &3 lenel
at that linel
[ TR= P3 x Q3T
[TC = ATC 1 Q2)
P3xQ3 -AT (Q3)
(3-A TO Q
大20
as P3 > ATCc
@. The monopoly s
shut down
making propet and nence it chould not
Transcribed Image Text:quilibruim is where at thin poing) . a she quantity which monopoly praduce at MR MC. * are ma wimized The quantity produerd at thês poñnt o Qs O Allo cating the d3 ou the demand curuo me niell get the price the price io P3 at Bs lenel 3 price level LP3) but eutfut he A TC at Q3 is loemer than the abone the tenel t). at Q3 lenel 2 putjut the prie (P3) n greater there are There are profita thata ATC. hence, at &3 lenel at that linel [ TR= P3 x Q3T [TC = ATC 1 Q2) P3xQ3 -AT (Q3) (3-A TO Q 大20 as P3 > ATCc @. The monopoly s shut down making propet and nence it chould not
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