Monopoly 15 Determining Profits Graphically: A Firm with Zero Profit or Losses Q P ATC Q profit max P =ATC Find output where MC = MR, this is the profit maximizing Q Find profit per unit where the profit max Q intersects ATC Find how much consumers will pay where the profit max Q intersects demand, this is the monopolist price MC D MC = MR D at Q profit max MR ATC at Q profit max Since P=ATC at the profit maximizing quantity, this firm is earning zero profit or loss 15-12
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