In a monopolist's short-run equilibrium analysis, total revenue (TR) is the product of price (P) and quantity sold (Q), while total cost (TC) includes fixed and variable costs.
What is the goal of the monopolist
The goal is profit maximization by producing where marginal cost (MC) equals marginal revenue (MR). The short-run equilibrium is where TR exceeds TC by the maximum amount, representing maximum profit. If TR doesn't cover variable costs, a shutdown may occur.
Analyzing TR and TC helps identify profit-maximizing output and potential shutdown points for a monopolist.
Question
What is Monopolist short run equilibrium using total revenue and total cost approach