Average total cost $20 15 10 0 50200 Quantity 100.

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Presentation transcript:

Average total cost $ Quantity 100

$ Total-revenue curve Total revenue $ Q ElasticInelastic Demand and marginal-revenue curve Price

Price, costs, and revenue Quantity Q $200

Average total costs Quantity ATC x ATC 1 ATC x’ ATC 2 Q2Q2 Q1Q1 0

Price and costs A1A1 P1P1 Q1Q1 Q1Q1 Q2Q2 A2A2 Single-price monopolistPerfectly discriminating monopolist

Price and costs (dollars) Quantity QmQm QfQf QrQr PrPr PfPf PmPm

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