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Feb 15th, 2017
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  1.  
  2. Page(s) 178–179
  3. 6.3. How much do monopolies charge, and how much do they produce?
  4. Based on the following graph, how much should the monopolist charge for its product?
  5. A graph compares average total cost and price, to quantity. There are negative, linear curves for demand and marginal revenue, and parabolas for both both marginal cost and average total cost. At quantity 40 and price 10 dollars, M R equals M C. At quantity 50 and price 20 dollars, M C equals A T C. At quantity 40, the average total cost is 23 dollars, and the demand is 30 dollars.
  6.  
  7. 30 dollars is the answer
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