Respuesta :
Answer:
Check the explanation
Explanation:
Marginal revenue is the revenue earned by selling an additional unit of output. Marginal Revenue for fifteenth unit of output is calculated as below.
Marginal Revenue= [tex]\frac{ATR}{AQ}[/tex] =[tex]\frac{1200 - 900}{15 -10} = 60[/tex]
Marginal Cost is the additional cost incurred on producing additional unit of output. Marginal Cost for fifteenth unit is calculated as below.
Marginal Cost= [tex]\frac{ATC}{ AQ} =\frac{825-675}{15-10} =30[/tex]
The marginal revenue when the quantity is 25 is
The marginal Cost when the quantity is 15 is
The marginal profit of a monopoly is 0 when the marginal profit is equal to the marginal cost. The monopoly produces at an output where the marginal profit is equal to zero.
Thus, the output produced by the monopoly is
The corresponding price set is at $70.
120 units
A perfectly competitive market produces an output where the marginal cost is equal to
the average revenue. Thus a competitive firm produces
The corresponding price is set at $50.
130 units)
The monopoly price $70 is higher than the competitive firm's price $50.
Hence, the correct option is
The Accurate option is The monopoly price of $70 is higher than the competitive firm's price of $50.
What is Marginal revenue?
When the Marginal revenue is the revenue earned by selling an additional unit of output. Then The Marginal Revenue for the fifteenth unit of output is calculated as below.
Marginal Revenue = ATR/AQ = 1200-900/15-10 = 60
Marginal Cost is the additional cost incurred on producing an additional unit of output. The marginal cost for the fifteenth unit is calculated as below.
Marginal Cost= ATC/AQ = 825-675/15-10 = 30
Then, The marginal revenue when the quantity is 25 is
After that, The marginal Cost when the quantity is 15.
When The marginal profit of a monopoly is 0 then the marginal profit is equal to the marginal cost. Also, The monopoly produces an output where the marginal profit is equal to zero.
Therefore, the output produced by the monopoly is
Then The corresponding price set is at $70.
120 units
When A perfectly competitive market produces an output where the marginal cost is equal to
Now, the average revenue. Therefore a competitive firm produces
Then The corresponding price is set at $50. (130 units)
Hence, the correct option is The monopoly price of $70 is higher than the competitive firm's price of $50.
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