Characterization of the hypothetical monopoly firm


Problem: A hypothetical monopoly firm is characterized by the following diagram.

612_Hypothetical monopoly firm.jpg

a. Assuming that the above firm is a profit maximizer operating in the short run, determine its optimal price?
   
b. Determine the firm's profit per unit.                           
   
c. What is the ATC in dollars?                               
                                           
d. If the above monopolist were to behave like a perfectly competitive firm (operating in the long run), determine its price.

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Microeconomics: Characterization of the hypothetical monopoly firm
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