91Ó°ÊÓ

A dominance will be when one organization has a dominant position in an industry or sector with both the purpose of banning all those other potential competitors. Monopolies are often discouraged in free-market nations. Because users do have choice, they are considered as lead to market manipulation and declining product.

The economic profit is maximized at $\$5,000$per week. The output (Q) is $500$ per week. The cost of the firm is $\$15$ per unit. the value charged by seller is$\$40$ per unit.

The average total cost is that the cost of the assembly of the per unit good. The marginal revenue is that the addition in total revenue by selling yet another unit ofthe great.
The totalfixed charge (FC) of the firm is calculated below:
$\text{Profit}=\text{Total revenue}−\text{Total cost}$

$\mathrm{\$}5,000=\mathrm{\$}40×500−\mathrm{\$}15×500−\text{Fixed cost}$

$\text{Fixed cost}=\mathrm{\$}7,500$

The total price (ATC) is calculated below.

$ATC=\frac{TC}{Q}$

$=\frac{\mathrm{\$}15,000}{500}$

$=\$30$

The total cost (ATC) is $\$30$.