Post on 14-Jan-2016
Ave
rag
e to
tal
cost
$20
15
10
0 50 200
Quantity
100
$750
500
250
Total-revenue curve
To
tal
reve
nu
e $200
150
100
50
0
0 2 4 6 8 10 12 14 16 18 Q
Elastic Inelastic
Demand and marginal-revenue curve
Pri
ce
Pri
ce,
cost
s, a
nd
rev
enu
e
Quantity
Q 10 9 8 7 6 5 4 3 2 1 0
50
75
100
125
150
175
$200
Ave
rag
e t
ota
l co
sts
Quantity
ATCx
ATC1
ATCx’
ATC2
Q2 Q1
0
Pri
ce a
nd
co
sts
Pri
ce a
nd
co
sts
A1
P1
Q1Q1 Q2
A2
Single-price monopolist Perfectly discriminating monopolist
Pri
ce a
nd
co
sts
(do
llar
s)
Quantity
Qm Qf Qr
Pr
Pf
Pm