Sketch a possible marginal revenue curve for this firm

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The following graph shows the demand curve and the marginal cost curve for a monopolistic firm producing electric cars.

a. Sketch a possible marginal revenue curve for this firm.

b. On the horizontal axis, label the profit-maximizing level of production as Q1. On the vertical axis, label the price P1 that the firm will charge at the profit maximizing level of production.

c. Label the area of deadweight loss in the graph you draw for part (b).

d. How do the monopolistic price and quantity compare to those of competitive market equilibrium?

Reference no: EM131240700

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