2.1
Study the graph below and answer the questions that follow.
Cost/
Revenue
200
a
150
100
50
50
C
MONOPOLY
MR
#
MC
AC
DD/AR
0
100
150
180
Quantity
2.1.1
What is the selling price of the business above?
2.1.2 Identify the letter in the graph above that represents the loss
minimising point.
(1)
(1)
2.1.3
Briefly describe the term monopoly.
(2)
2.1.4
Why is the equilibrium position above typical of a short run?
(2)
2.1.5 Determine the loss for this business. Show ALL calculations.
(4)
[10]
