The graph below illustrates a monopolist in the short run.

 

a. How many units will this firm produce? How can you tell?

b. What price will this firm charge? How can you tell?

c. What is the maximum amount of profit this firm will earn? How can you tell?

d. Describe some of the barriers to entry that might allow a monopolist to continue to earn positive profits in the long run.

Transcribed Image Text:

8 7 6 5 3 2 AS 1- 0 MR SMC ATC AVC D + 20 40 60 80 100 120 140 160 Quantity 8 7 6 5 3 2 AS 1- 0 MR SMC ATC AVC D + 20 40 60 80 100 120 140 160 Quantity