Monday, November 16, 2009

Economics and Widgets & Maximizes your profit?

Wanda's Widgets is a single-price monopolist. Assume that Wanda's marginal cost is constant at $40, and that she faces the marginal cost, marginal revenue, and demand in the graph below. She has no fixed cost





http://www.imagehosting.com/show.php/134...





As a single-price monopolist, Wanda maximizes her profits by producing _____ widgets at a price of ____ each.





fill in the blanks

Economics and Widgets %26amp; Maximizes your profit?
3 widgets @ $70 each. Profit is maximized where marginal revenue (MR) is equal to marginal cost (MC), regardless of the market type. At three units, buyers are willing and able to pay $70.


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