00:01
So let's talk about this question.
00:03
For a monopoly and perfect competition, we're both going to set marginal revenue equal to marginal cost to get the profit maximizing output.
00:56
Then for the monopoly, we need to find the price based off of the demand curve.
01:04
So that's the price that will be charged for each unit.
01:15
And then to calculate our profit, the profit would be total revenue minus total cost.
01:26
So in this case, we know total revenue is equal to the price times the quantity.
01:36
So it would take this price and multiply it by the quantity.
01:39
To get our total cost, we would use average total cost.
01:49
So let's say that we have our average total cost.
01:54
It's going to be a u -shaped curve.
01:58
And then marginal cost will intersect with the lowest point on average total cost.
02:10
So then from our quantity, if we multiply by average total cost, we can get the total cost.
02:22
And if we have both of these, we can get the profit...
