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

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Presentation on theme: "Average total cost $20 15 10 0 50200 Quantity 100."— Presentation transcript:

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

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7 $750 500 250 Total-revenue curve Total revenue $200 150 100 50 0 024681012141618Q ElasticInelastic Demand and marginal-revenue curve Price

8 Price, costs, and revenue Quantity Q109876543210 50 75 100 125 150 175 $200

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

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

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

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