ES2550: Week 8 Monopoly Versus Perfect Competition

ES2550: Week 8 Monopoly Versus Perfect Competition

Page 1

Consider the following graph:

Based on the above graph, answer the following questions for a monopoly and a perfectly

competitive firm.

A. For the monopolist:

I. Profit maximizing output =

II. ATC =

III. AR =

IV. Price =

V. Total Revenue =

VI. Total Cost =

VII. Profit =

B. For the perfectly competitive firm:

I. Profit maximizing output =

II. ATC =

III. AR =

IV. Price =

ES2550: Week 8 Monopoly Versus Perfect Competition

Page 2

V. Total Revenue =

VI. Total Cost =

VII. Profit =

C. Discuss the differences you observe in your answers above between the monopoly and

perfectly competitive firm.

Submission Requirements:

Formulas and calculations must be shown along with the final correct answer.

Attach a Word document that contains all answers.

Format: Double line space, Times New Roman, 12-point font