MG 640 Managerial Economics Homework Assignment Week 9 Chapter 8: Managing in Competitive Markets For this week read Chapter 8 INSTRUCTIONS: Answer the following questions and explain your work. Do not attach any other pages. Download, write your answers on this same Question sheet. Don't write your name Upload in the same drop box for the purpose of making comments Don't change the questions or use different values? PWPPP!' Question 1 Instructions: Show all steps for each part of the question below. The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist. Below the graph is the market demand curve. a. Comp/ere the columns for Total Revenue and A verage b. What level of output should this monopolist produce? Explain how you have arrived at your answers. Hint: State the rule profit maximizing out for a monopolist. Next, show your answers in the graph above? c. What price should this monopolist charge? Explain how and then show your answers in the graph below. d. What price and output would prevail if this rm's product were sold price-taking firms in a perfectly competitive market? First the prot maximizing rule for monopolist and the competitor; explain and then show your result using the above graph. $ PRICE 8 7 6 5 MC 4 3 2 D 1 1 2 3 4 5 6 7 8 Q MR TABLE Showing Market Demand Price Quantity Total Revenue Average Revenue HNWAUCVOO CO VOUTAWNY