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Question 1

The graph below shows demand curve and cost data for a firm operating as a monopolist. The green line shows average total costs (ATC), and the black line shows marginal cost (MC).

Graphing window shows horizontal axis: 0 to 30, vertical axis: 0 to 30. Start Graph, Color red
xy
010
19.5
29
38.5
48
57.5
67
76.5
86
95.5
105
114.5
124
133.5
143
152.5
162
171.5
181
190.5
200
21-0.5
22-1
23-1.5
24-2
25-2.5
26-3
27-3.5
28-4
29-4.5
30-5
Start Graph, Color blue
xy
010
19
28
37
46
55
64
73
82
91
10-0
11-1
12-2
13-3
14-4
15-5
16-6
17-7
18-8
19-9
20-10
21-11
22-12
23-13
24-14
25-15
Start Graph, Color black
xy
00
13.4
26.8
310.2
413.6
517
620.4
723.8
827.2
930.6
1034
1137.4
1240.8
1344.2
Start Graph, Color green
xy
128.7
216.9
314.1
413.55
513.9
614.7
715.757
816.975
918.3
1019.7
1121.155
1222.65
1324.177
1425.729
1527.3
1628.887
1730.488
1832.1
1933.721
2035.35
2136.986
2238.627
2340.274
2441.925
2543.58
2645.238
Label "Quantity of Train Tickets" at pixel coordinates (175,0).Label "Price of Train Tickets" at pixel coordinates (0,170).

At the profit maximizing (loss minimizing) quantity, the monopolist is experiencing

 

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